Hard times for Norwegian
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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.
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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.
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.
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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.
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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.
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.
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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.
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/
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.
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/
Last edited by Kirks gusset; 10th Oct 2020 at 10:09.
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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"
https://www.norwegian.com/globalasse...april-2020.pdf
Increased use of seasonal agreements to manage winter trough
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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
But that’s a soundbite for investors you have there and doesn’t relate directly to the reality for the crews
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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..
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..
Last edited by uncle-traveling-matt; 11th Oct 2020 at 15:10.
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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.
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.
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...
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...
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https://simplywall.st/stocks/no/tran...too-much-debt/
The Norwegian Government needs to get off the fence.
The Norwegian Government needs to get off the fence.