Hard times for Norwegian

[Meester proach]

I should think the Norwegian government doesn’t want wizz anywhere near the important inter Scandinavian routes

[ManaAdaSystem]

From Scandiland news: They now consider closing their Gatwick base.

[Old King Coal]

ManaAdaSystem.....in line with what you say, the rumour I hear suggests that Norwegian's short-haul ops at LGW will cease on 30th November and any folk presently on furlough will correspondingly be made redundant.

[EIFFS]

Kirks gusset

I'm not sure the Norwegian government will see WIZZ as a suitable replacement, most of the local jobs would be low paid line maintenance, cabin crew a few pilots and any profits from revenue will go back to WIZZ home country, WIZZ cost base similar to FR which tells you all you need to know about well paid jobs, Oslo will step in to Norwefgian.

[EIFFS]

I suspect that there will be many airlines in state ownership before this is over, not much point having a trillion dollars rainy day sovereign wealth fund and not using it when it pisses it down, Norway is heavily dependant on tourism, the plan would be to privatise it downline, a bit like the SNP with Prestwick except that the Norwegians are well educated and the SNP are thick as mince.

[SWBKCB]

Don't Norway and the EU have an Open Skies agreement?

[brushcounsel]

Originally Posted by EIFFS

any profits from revenue will go back to WIZZ home country

So, to Switzerland?

Also, how much of Norwegian's profits has Norway been getting recently and what's their ROI on current aid?

[SaulGoodman]

I don’t see Norwegian in their current shape and form surviving however:

Norway might be interested in a controlling stake in a “national” airline serving OSL. If Norwegian can renegotiate its leases and Norway can buy the airline on the cheap it might be viable in the long term in a much smaller form. Look at the Aerlingus model connecting Europe and North America or Finnair between Asia and Europe. Competing on a short haul market with WIZZ or RYR would be a complete death sentence as is LH loco.

[Kirks gusset]

Tourism may well be important for Norway, as with every other country, however, the tourism income results from people visiting the county and spending internally. Of course there is an element of infrastructure revenues from taxi, airport staff etc. The means by which tourists get to the county matters not, and in the case of NAS, most of the "revenue" is hoovered up with the historical debts , most of which reside outside Norway. The proposed closure of LGW SH ops was always on the cards, there was no way the Company would stump up wages for Foreign workers when haemorrhaging funds at home. Perhaps the cost savings may be enough to allow the LH ops to start again.

Norwegian Air’s short-haul flights from Gatwick will not be affected as they are operated by pilots and crew based in the Nordics, the spokesman said.

One assumes the LH crews will be subject to the "flexi contracts" agreed at the May re-structuring meeting..i.e paid when needed to fly.
Sad times once again, Spain only costs them social taxes so may be safe until the summer when things should pick up... unless Wizz take advantage of the routes,
The release of the locked up shares yesterday (9th) resulted in a 24% fall in share prices.
https://www.marketscreener.com/quote...k-up-31509812/

[Meester proach]

I can assure you no one I know of in LH, has any sight , or knowledge of “ flexicontracts “, or any such thing.

[samsara]

Kirks gussett

I have absolutely no idea where you get your information from but a sizeable chunk of it posted on this thread is utter rubbish .

[Kirks gusset]

Probably the same "rubbish" that was presented at the investor relations meeting in April before the May bail out agreement and the vision for the "New Norwegian"

Increased use of seasonal agreements to manage winter trough

https://www.norwegian.com/globalasse...april-2020.pdf

[Meester proach]

Truth be told , it’s always been seasonal and I think it was this time last year they were asking who wants to go part time , leave of abscence, unpaid leave etc.
But that’s a soundbite for investors you have there and doesn’t relate directly to the reality for the crews

[uncle-traveling-matt]

Correct, this is about roster flexibility more than anything else. Not flexicrew contracts like easyJet had. It is a no go in the Nordics.

As for LGW SH and new Norwegian, operate Scandi to LGW and then connect to Norwegian LH, where there is a market to operate and a decent sized long-haul network. Why bother going LGW-ALC, let the vultures battle it out..

[Diavel]

The management of Norwegian is considering shutting down longhaul ops out of LGW. according to the news here in Scandinavia.
The companys shares are now very close to beeing worthless, trading at 0.7 NOK at the Oslo stock exchange.
The only chance this company has is if the norwegian government decides to re capitalize the company. Something they sofar have been reluctant to do, as it is considered to be the same as throwing money into a bottomless pit.

[SaulGoodman]

or are they awaiting bankruptcy so they can pick up whatever remains they want? Re-negotiating leases and so-on?

[Clop_Clop]

Diavel

Still the message before was they needed more funds at the end of this year after the earlier lifeline, so for govt it shouldnt come as a surprise they need more ..

Q3 report due 29/10 so maybe some more info then about the situation...

[aileron]

And the share price continues a slow burn to nothing.

[Thomas_Anderson]

I’m surprised they have lasted this long in the current climate.

[Kirks gusset]

https://simplywall.st/stocks/no/tran...too-much-debt/

The Norwegian Government needs to get off the fence.