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Norwegian splits with its staffing partner OSM Aviation and pays the outstanding debt in shares according to this stock announcement:
https://newsweb.oslobors.no/message/510029 Press in Norway reporting it as Norwegian taking in 3000 employees in US, UK and Spain as directly employed,. But no return to work before traffic rebounds. Natural that New Norwegian takes over the full and whole responsibility for the companies that employs our staff says Schram. In norwegian: https://e24.no/naeringsliv/i/3JW9pv/...emanningsbyraa Press release: https://media.no.norwegian.com/press...ngland-3022209 |
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Pretty much in line with the announcement in May about the bail out of shares and restructure, the " new Norwegian" will take crews on "flexible" contracts and PBH for the airframes, makes sense when cash is tight.
If the pilots at least get LPCs and keep current, even if they earn next to nothing, at least they will be well placed when/if things pick up. "the email" to crews to follow. |
According to Leeham News and Analysis, Norwegian have filed a claim against Boeing for more than US$1B.
The claim involves cancellation of all the 110 Max' ordered, including the 18 already delivered. Norwegian claims fraud, breach of contract and gross negligence by Boeing. They also claimes Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed. Returning airplanes NAS also wants to return its 18 737-8s that were delivered but which have been grounded since March 2019 in the wake of two fatal MAX accidents with Lion Air and Ethiopian Airlines. Norwegian filed claims for “in excess of $1bn.” It seeks court authority to rescind contracts for 110 MAX aircraft (including ones already delivered) and an unspecified number of 787s, including some already delivered. ------ Norwegian claims fraud, breach of contract and gross negligence by Boeing. It claims BCASE is charging for maintenance services not delivered. The claims are common to others that MAX customers made: Boeing produced an airplane that was unsafe, covered up design issues and claimed the MAX is virtually identical to the 737 NG, requiring no unusual transition training would be needed. |
https://edition.cnn.com/2020/06/30/b...ers/index.html Looks like Boeing think the 97 Aircraft were cancelled due to financial problems at NAS. The deposits may or may not be returned, but could be off-set against future expenditure.
The compensation for the 787 is another issue. Its all rather grey area, but infact 3 separate legal issues as far s the Courts will be concerned. NAS may be successful in the 787 engine issue and associated costs, unlikely in the 97 Airframes and little chance of returning the 18 737-800 just because they don't need them or cant afford them. Lease values have fallen 22% and CMR values down about 6M per airframe, Not attractive to have them sitting around either with NAS or with Boeing https://www.ch-aviation.com/portal/n...spair-over-aid |
Not sure what effect this will have or how critical such a guarantee was to any recovery model.
https://www.aerotime.aero/gabriele/2...edit-guarantee |
Low-cost carrier Norwegian has warned that it will require further financing next year to survive the winter as coronavirus-related travel restrictions continue to hamper the recovery in air travel.
Norwegian today posted a net loss of NKr5.3 billion ($595 million) for the first half of 2020, a period in which passenger levels dropped from 18.1 million to 5.3 million as international passenger flights came to a virtual standstill in the second quarter. https://www.flightglobal.com/strateg...139934.article |
It’s not really surprising when carriers traditionally make money in the summer to survive the winter.
I think the hibernation idea is a good one , if they can hit the ground running in 2021, especially having seen some other LCCs load factors at present - appears to be a waste of fuel in a lot of cases. |
15-17 Dreamliners to be sold. That is nearly half of the longhaul fleet, but they are not giving up on the longhaul part.
About 10 737 aircraft already sold. |
and where's the market for them?
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I would imagine the same place where there are currently buyers for airline shares i.e. speculative purchasers who believe the buying price will be so low that they stand a very good chance of making money when ( in their view ) markets swing back to some kind of normality.
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Well, it's none-existent at the moment, so I guess they are talking about the leased frames going back to its owners. Shouldn't be too difficult a maneuver, because its the same leasing companies who in turn own Norwegian...
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spare engines? 🤔
anyway, it surprises me they apparently own them. |
uncle-traveling-matt
Not what they said. They say it’s going to be difficult to sell these aircraft, due to the current marked. Moving an aircraft from Norwegian to one of the leasing companies who owns Norwegian doesn’t make much sense. Or money. |
Is it better for the lessor now turned shareholder to keep the aircraft at Norwegian, stored but racking up a monthly claim of lease that will never be paid and digging Norwegian a deeper hole?
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Didn't they convert the leases to PBH, hence no debts, other than planned maintenance being racked up, being stored for free, it's a good deal.
The cash flow issues will start to bite in the UK with the winding down of the furlough scheme, not so much in Spain were the state "emergency fund" allows crews to be laid off without pay and just get a miserable 1000 euros or there about, hence other that social taxes, again NAR have no outlay. They really need a bunch of funds quickly to keep solvent, not sure how they claim to be able to survive 6/7 months with no income as such, but in fairness the management are trying hard..although with shares falling it's not attractive to investors in any shape or form. And with the doom and gloom merchants at LGW it's not surprising the LH seat take up is down 97% |
Originally Posted by ManaAdaSystem
(Post 10876125)
uncle-traveling-matt
Not what they said. They say it’s going to be difficult to sell these aircraft, due to the current marked. Moving an aircraft from Norwegian to one of the leasing companies who owns Norwegian doesn’t make much sense. Or money. |
I’ve been through this. There is no way that Norwegian can survive this winter. Riddled with debt and no product to sell.
Let’s see who pops up next to revolutionise low cost long haul..... |
It’s been said before, but thanks for your kind wishes.
If I was also in aviation I’d be hoping 3000 737/787 experienced pilots were not dumped on the market . |
Don't think there are 3000 pilots left in Norwegian.
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You think they all found jobs elsewhere ??
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Thread first started on Sept 2019 and here we are a full year later........
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Originally Posted by Meester proach
(Post 10876799)
You think they all found jobs elsewhere ??
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Is there even a market ? I doubt it unless your thinking about 5 years hence
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Not really no. But that's not the question you asked me.
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Ok, so in total from those already left and those who remain, would be near 3000
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There is many airlines around the world that will go bankrupt during incoming winter unless they get money from the outside (etc. state aid, cash injections by owners...)
Norwegian is obviously one of those and it's not a secret as Schram talked about it openly few days ago. |
Originally Posted by SWBKCB
(Post 10875353)
and where's the market for them?
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The traffic figures for August reflect the state of uncertainty in the industry:
https://media.uk.norwegian.com/press...demand-3031945 As the CEO constantly points out they need liquid cash to keep going, the LH flights from UK are available from early Dec but take up is pretty non-existent as the boarders are closed and travel insurance/ credit card claw back won't cover if you book to a "closed destination" knowing that at the time. If Trump gets his act together and opens USA up they may have a chance, otherwise LGW LH will be much delayed, having said that, its doubtful the company would want to bleed cash into non profit making routes, as pointed out again by CEO :"and concentrate supply in line with demand." |
Of course it would have nothing to do with savvy consumers being unwilling to give Norwegian their hard earned cash in advance when there is a risk of them going boom??
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There’s a risk of any airline going “boom” right now.
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“With such a bad summer as we’ve had this year, we don’t have the financial muscle to get through the winter,” Norwegian Air’s chief executive, Jacob Schram, told newspaper Dagens Næringsliv (DN Bonus party over Norwegian’s part of the requested bailout comes just after DN reported on bonuses paid to top Norwegian Air executives last year, just before the long-troubled airline’s founder and former CEO Bjørn Kjos stepped down. Kjos’ massive intercontinental expansion plan ended up leaving the airline with troubled aircraft from Seattle-based Boeing and huge debt. Kjos reportedly nonetheless approved bonuses of between NOK 2 million and NOK 6 million to four members of management, while also paying sky-high fees to external consultants. The bonuses were paid out several months before the Corona crisis hit, and new CEO Schram has stressed that the days of such high extraordinary pay are over, but it’s all provoked labour unions at a time of massive layoffs. Newspaper Dagsavisen editorialized on Monday that all the talk about “solidarity” among management and workers at Norwegian Air loses credibility in the face of such high pay for a few leaders. Kjos has said he can’t remember the bonuses doled out before Norwegian Air reported huge losses for 2019. |
So much for, “We’re all in this together Red Nose Warriors!”
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The booking levels to the US are a bit miserable to say the least but there is demand, there was even talk of using a 737 to restart JFK with a 100 passenger limit, but APD killed it anyway
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Do Norwegian’s 737s now belong to them, as in the company, or are they still leased from a third party? I’ve been following this thread for a while and am still no clearer.
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EIFFS
That’s a shame but I expected it. I don’t think any thoughts of xmas market to JFK will be on without a miracle - we will have to see if they make it to the reboot in March |
Kjos has said he can’t remember the bonuses doled out before Norwegian Air reported huge losses for 2019. |
Their stock price has fallen form 4 euros to .083 so pretty much worthless. It helps the Norwegian Govt extended the loan scheme until Feb 2021 but based on predicted revenues they will still run out of cash this year. LH program from LGW will be slashed
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Source ? Or do you just make up your predictions
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0.93 NOK and at 11 to 1€, that makes it about .084 on my calculator. https://www.bloomberg.com/quote/NAS:NO
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