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Originally Posted by directmisbi
(Post 10706124)
Card aquirers have a hold back of almost 100 percent. Funds are released on the day pax are travelling. This has been the situation for more than a year. Receivables are standing at more than 11 billion nok. These are insane numbers and any normal company would have been bust long time ago if it wasn't for the work of a brilliant CFO. It that context it can't really get worse, only better. Recent analysis from HSBC (Andrew Lobbenberg) estimate that even in their Corona ”high impact scenario”Norwegian woule ”..still be able to meet the book equity and liquidity covenants..”
Norwegian are already in battle mode with most of the network on part-time, recruitment freeze, and a absolute minimum expenditure across the network. Something most companies are only starting to implement under a lot more stressful circumstances. Please also consider the fact that Norwegian are almost unhegded on fuel, another great advantage towards it's peers. Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet. Negotiations are ongoing and a large cash amount are expected. If this is not enough, professional investors can see through all of this, and think 6 months ahead.. |
Lastly, I would like to point out that Norwegian has 18 max on the ground and (as the only company, something most Scandinavian analytics have forgotten) not received a single dime from Boeing yet. Norwegian is already on a “stop sales” with a lot of travel agencies. They don’t book them anymore in a package as they are responsible. Not a very good sign. |
Originally Posted by SaulGoodman
(Post 10707717)
Why do you think that is...
Norwegian is already on a “stop sales” with a lot of travel agencies. They don’t book them anymore in a package as they are responsible. Not a very good sign. https://mobile.reuters.com/article/amp/idUSKBN20W1Z4 |
At least oil is down significantly, I would imagine norwegian are not hedged to a large amount, ironically this has saved a few carriers in the past, the big boys have spare cash to hedge, but end up hedging at a very high price.
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Originally Posted by UAV689
(Post 10708030)
At least oil is down significantly, I would imagine norwegian are not hedged to a large amount, ironically this has saved a few carriers in the past, the big boys have spare cash to hedge, but end up hedging at a very high price.
to be honest a drop in aviation fuel is welcomed but it's not if sufficient magnitude or even timing to help some airlines out of the mire. |
anybody who can explain this from the reuters article? Why would this be the benchmark for potential problems in an airline. There is much more than only debt/earning ratios. What would be a problematic ratio and what is the ratio for Norwegian and flybe just before it went under.
A three-month shutdown would inflate Air France-KLM's net debt to 7.7 times earnings, Citi calculates, and swell Lufthansa's multiple to 12.4. |
Originally Posted by rotorwills
(Post 10708080)
to be honest a drop in aviation fuel is welcomed but it's not if sufficient magnitude or even timing to help some airlines out of the mire.
And even then, a lot of airlines hedge their fuel so it won’t make much of a difference. |
Originally Posted by teamax
(Post 10707158)
Everybody loves an optimist.
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Originally Posted by ReturningVector
(Post 10708136)
And even then, a lot of airlines hedge their fuel so it won’t make much of a difference.
They will have to close those futures contract out at a loss. |
The chairman of Finnair once said that given the choice of a low oil price or a strong economy, he'd take the strong economy.
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Originally Posted by marchino61
(Post 10708278)
Due to hedging, the drop in price might even cost some airlines money - they have hedged (e.g. bought forward) fuel at prices higher than the current price that they no longer need.
They will have to close those futures contract out at a loss. Delta even bought a refinery which it later sold at a loss: https://www.forbes.com/sites/danielr.../#37f79231c198 |
They’ve just stopped all flights to Italy (Norwegian)
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Originally Posted by uncle-traveling-matt
(Post 10708171)
Do you understand Norwegian? There is a press conference announced tomorrow with the Prime Minister of Norway, and Minister for Finance. If not, I can inform you that you will find the red noses flying in and out of an airport near you, also after Covid19.
Will they use state funding to keep them in the air? If so, which part of Norwegian? Swedish, Norwegian, International, Irish (if that part still excists), Argentinian? |
News just out.
Norwegian to cancel 3000 flights and slash a “major part” of its workforce. press release in the link below https://media.uk.norwegian.com/press...vid-19-2980473 |
Originally Posted by dcoded
(Post 10708851)
News just out.
Norwegian to cancel 3000 flights and slash a “major part” of its workforce. press release in the link below, in Swedish however. https://media.se.norwegian.com/press...vid-19-2980501 |
Originally Posted by Black Pudding
(Post 10708855)
Is there a link to an English version
updated my post with English press release |
This represents approximately 15 percent of the total capacity for this period That said I am not a financial expert and have no inside knowledge of Norwegian financial situation ... |
Originally Posted by SaulGoodman
(Post 10708887)
in other news: Wizzair financial position also far from rosy. Not a great time... |
Originally Posted by Porto Pete
(Post 10708902)
Do you have a source, I have not seen any evidence to suggest that is true?
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