Hard times for Norwegian
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Wouldn't hold my breath, but interesting how this one is going to play out.
https://simpleflying.com/norse-atlantic-block/
New administration, new ideas and some of the people there have been known not to be to fond of dodging labor laws...
https://simpleflying.com/norse-atlantic-block/
New administration, new ideas and some of the people there have been known not to be to fond of dodging labor laws...
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Errrr, the US aren't exactly ones to talk about labor rights are they? Situation is complex right now. If Norse wants any favors from the Norwegian govt they might think twice about choosing Ireland as a flag of convenience again but I agree it's a possibility. But they'd simply be taking advantage of the same exploitation that big Europe offers and Ireland offers Amazon, Apple et all.
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Norwegian hired Adrian Dunne from Ryanair as EVP Operations.
Ex-Ryanair director lands new role at Norwegian Air | Travel Weekly
Ex-Ryanair director lands new role at Norwegian Air | Travel Weekly
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Irish court clears Norwegian restructuring for take-off.
Ireland’s High Court cleared the way on Friday for Norwegian Air to raise new capital and emerge from bankruptcy protection in Ireland and Norway in May by approving the airline’s restructuring scheme.
Ireland’s High Court cleared the way on Friday for Norwegian Air to raise new capital and emerge from bankruptcy protection in Ireland and Norway in May by approving the airline’s restructuring scheme.
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26th March to 9th April Voting period for the creditors in Norwegian Restructure
26h March to 26th April Appeal window for Irish process
9th April to 9th May Appeal period for Norwegian process
Mid May Start to raise capital, minimum required to exit is 4.5 Billion NOK
End May planned Exit and continued capital raising for continued operations.
Its doubtful there will be any "appeals" as no creditors objected, the biggest hurdle will be the capital raise, the 4.5 Billion is just "start up", continued operations need far more for remainder of 2021, and they have agreed to pay Airbus and some creditors to stave off objections during the examinership, these will become legally binding contracts.
If they "down size" in Spain there will be contract severance payments to be made so at the moment it's a very thin line but when the government support for workers ceases the unions will want to know where their members stand.
Given they only operate 7 airframes at the moment, and those not full, the revenue forecast on 50 airframes which forms the basis of the cash flow seems a bit "pie in the sky" compounded by new competition on their existing Nordic routes
Basically, a lot of the initial funding will be spent, no new funding, no survival
26h March to 26th April Appeal window for Irish process
9th April to 9th May Appeal period for Norwegian process
Mid May Start to raise capital, minimum required to exit is 4.5 Billion NOK
End May planned Exit and continued capital raising for continued operations.
Its doubtful there will be any "appeals" as no creditors objected, the biggest hurdle will be the capital raise, the 4.5 Billion is just "start up", continued operations need far more for remainder of 2021, and they have agreed to pay Airbus and some creditors to stave off objections during the examinership, these will become legally binding contracts.
If they "down size" in Spain there will be contract severance payments to be made so at the moment it's a very thin line but when the government support for workers ceases the unions will want to know where their members stand.
Given they only operate 7 airframes at the moment, and those not full, the revenue forecast on 50 airframes which forms the basis of the cash flow seems a bit "pie in the sky" compounded by new competition on their existing Nordic routes
Shareholders have to agree to their holdings being reduced to a combined total of just 4.6%, and 1,600 unsecured creditors plus customers seeking refunds must accept just 5% of what they are owed plus a ‘pro rata’ share-out of a NOK 500 million (€50 million) ‘cash pot’.
Norwegian Air will then seek to raise NOK 4.5 billion (€446 million) in new capital in order to release a Norwegian government loan guarantee of NOK1.5 billion (€149 million).
The new capital is needed in part to provide the ‘cash pot’ to share among creditors.
Norwegian Air will then seek to raise NOK 4.5 billion (€446 million) in new capital in order to release a Norwegian government loan guarantee of NOK1.5 billion (€149 million).
The new capital is needed in part to provide the ‘cash pot’ to share among creditors.
Last edited by Kirks gusset; 27th Mar 2021 at 11:56.
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As predicted they now realise the initial money raised will not be enough:
https://www.irishtimes.com/business/...nned-1.4536968
The industry uncertainty is cited as the "reason" but the initial fundraising plan did not allow enough to meet the legal obligations they agreed with the creditors and the court. Wise move as this is the last chance they have before the plug is pulled.
https://www.irishtimes.com/business/...nned-1.4536968
The industry uncertainty is cited as the "reason" but the initial fundraising plan did not allow enough to meet the legal obligations they agreed with the creditors and the court. Wise move as this is the last chance they have before the plug is pulled.
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Its like a copy and paste from the previous incarnation of Norwegian. Lure in the investors. Then a few months later ask for more cash. Good money follows bad in order to try and protect their initial investments. Rinse and repeat.
I still don't know how its going to get off the ground as surely credit card companies, fuel suppliers, airports etc will all be requiring cash up front/held in escrow?
I still don't know how its going to get off the ground as surely credit card companies, fuel suppliers, airports etc will all be requiring cash up front/held in escrow?
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Not good news for the Spain crews:
https://www.euroweeklynews.com/2021/...ucturing-deal/
Just one airframe in Malaga and Alicante being operated by Scandinavian crews.
https://www.euroweeklynews.com/2021/...ucturing-deal/
Just one airframe in Malaga and Alicante being operated by Scandinavian crews.
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Norse
Airlines, or whatever it is called will at best be a short lived chance of employment for some of the ex. Norwegian LH aircrews.
The fact that Mr. Kjos is involved again should be a massive warning sign.
This character has only ever been good at one thing in the airline industry, burning other peoples money at an astonishing rate.
There was nothing innovative about Norwegian or Norwegian longhaul.
One can only hope that Mr. Kjos will not interfere with the running of the company.
Furthermore Nobody, with the exception of Sir Freddie Laker has ever made money from low cost longhaul. The few companies that today calls them selves lowcost longhaul, are dependent on either being a subsidiary of a full service airline, or beeing a member of a group of companies that have revenue streams from other activities. Doing as Norse wants to do is a recipe for failure, even if they optimize the operation compared to the old Norwegian LH.
People like Bjorn Kjos should be banned from the industry altogether.
The fact that Mr. Kjos is involved again should be a massive warning sign.
This character has only ever been good at one thing in the airline industry, burning other peoples money at an astonishing rate.
There was nothing innovative about Norwegian or Norwegian longhaul.
One can only hope that Mr. Kjos will not interfere with the running of the company.
Furthermore Nobody, with the exception of Sir Freddie Laker has ever made money from low cost longhaul. The few companies that today calls them selves lowcost longhaul, are dependent on either being a subsidiary of a full service airline, or beeing a member of a group of companies that have revenue streams from other activities. Doing as Norse wants to do is a recipe for failure, even if they optimize the operation compared to the old Norwegian LH.
People like Bjorn Kjos should be banned from the industry altogether.
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Yes, bases in CPH and HEL are to reopen with vacancies to be allocated as per the Master Seniority List. 'Reapply' would imply there is a selection involved which there is not! A quick chat and a walkthrough the T&C's on offer that's all.
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Time to do some myth busting: there is no 'contractors' vs 'permanently employed'! ALL Norwegian pilots regardless of base are/were employed by fully owned Norwegian subsidiaries, either PS (Scandinavia) or NAR (everywhere else) and the MSL covers ALL pilots flying Norwegian aircraft.
november.sierra
the question is if they would’ve been better off employed by one of the traditional contract providers. It seems more or less everyone was dumped with no salary or compensation as the subsidiary contract companies were put into bankruptcy. Or did I understand that wrong? I only see what was written here and in div media.
the question is if they would’ve been better off employed by one of the traditional contract providers. It seems more or less everyone was dumped with no salary or compensation as the subsidiary contract companies were put into bankruptcy. Or did I understand that wrong? I only see what was written here and in div media.
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Employment and "direct employment" are completely different as we came to find out. Only the Scandi crews would have benefitted from redundancy payments if the whole thing folded ( and it may well still do). The UK and Spain crews employed through what the Courts described as a "very complex business model" were basically left high and dry.
It is not rocket science to see your ID number and thus where your butt sits on the MSL and if you have any chance of getting a look in, having said that, there is a presumption that all pilots will re-apply, which of course is not the case. Looking at he proposed fleet in Spain, even if they crew up fro ramp-up if your seniority is outside the 30's forget it.
Don't know of any UK crew that would be interested, but what you hear and what goes on in the background is another matter. Perhaps more importantly, many will not have the right to live and work in Scandi land, or indeed be able to afford to on any "new contracts"
It is not rocket science to see your ID number and thus where your butt sits on the MSL and if you have any chance of getting a look in, having said that, there is a presumption that all pilots will re-apply, which of course is not the case. Looking at he proposed fleet in Spain, even if they crew up fro ramp-up if your seniority is outside the 30's forget it.
Don't know of any UK crew that would be interested, but what you hear and what goes on in the background is another matter. Perhaps more importantly, many will not have the right to live and work in Scandi land, or indeed be able to afford to on any "new contracts"
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Due to Spanish legislation, only the pilots based in Spain will get a chance to bid for the ES positions. That fact, however, will not prohibit them(like everyone else employed 1st of march 2020) to bid for all new positions in Norwegian the next five years. Bids to be awarded according MSL.
If one takes a look at the investor relations and company information pages, plan calls for 50 aircraft in 2021, 70 in 2022 and 90 for 2023.
“Near/mid-term transition to MAXs or Neos through fleet replacement and expansion in 2022-2024 is considered feasible within the current fleet strategy”
If one takes a look at the investor relations and company information pages, plan calls for 50 aircraft in 2021, 70 in 2022 and 90 for 2023.
“Near/mid-term transition to MAXs or Neos through fleet replacement and expansion in 2022-2024 is considered feasible within the current fleet strategy”