You really don't know what is behind the scenes? Scandinavian governments (specially Denmark and Sweden) are tired of injecting money into this company through different shareholders. Is it necessary to remind you that they have made three capital increases in the last half year and? Guess the reason why Denmark and Sweden changed the law about government aid for airlines.

And the most ridiculous and pathetic thing is the campaign they are trying to carry out now claiming it is not fair they only collect money from the Norwegian government under strict conditions. Pathetic!

NEDude, maybe, but if my government would choose to invest in a unhealthy company using mostly foreign contractors I would be quite pissed off...
Long before corona they were losing money and increasing debts.

They were expecting to be profitable this year (before covid19) and that would have been with MAXes still grounded and substantial part of the 787s as well. Their cost saving program Focus2019 worked very well. So when these hurdles with grounded aircrafts and over ambitious leaders are in the past, it will be a strong company.

These are their arguments why creditors should still have faith in them. We will know during coming weeks/months if they had.

Yes, let us all hope for the demise of Norwegian😂

That is simply not true. At the beginning of the year they said in 2020 they were expecting to have 0 losses. Then suddenly they claimed they were heading to the best summer season ever, but showed no proof of that.

Keep dreaming! Strong company having that huge debt and very little profit margin...

BS! Don’t putt words in my mouth...

Parked 787’s, Max issues and huge debts are not indicators of a very stable and profitable airline. But if the investors see a future in them I wish them all the best. I just do not see a huge government bail out arising. I hope I am wrong. 1000’s of jobless pilots on the market is not good for anyone.

This is very revealing....

https://www.newsinenglish.no/2020/03...BvaE3E2o.email

...and the money arrived from the bank with a black helicopter, and landed on the lawn in front of the HQ in Fornebu.

Nothing like a global crisis to bring all the chickenshelicopters home.

I, also, hope that most airlines survive this. But it will need a moon-shot both medically and economically to keep this downturn short and sharp because we lost so much time in the early stages.

Guys, there is an eerie peace and tranquility regarding the situation in Norwegian.
I would expect some kind of press release or statement, but come Friday and dead silence from the HQ.

The calm before the storm.

And I don’t if this is good or bad: On 23 March 2020, DP Aircraft I (DPA) announced that lease payments due on the 13th of March 2020, from Torskefjorden Leasing Limited (part of the Norwegian group and guaranteed by Norwegian) had not yet been made in respect of either of the two aircraft (LN-LNA and LN-LNB) DPA leases to Norwegian. Further to this announcement, DPA has now announced that DPA is suspending its dividend payments with immediate effect and until further notice.

DPA says that, while discussions are continuing with both Norwegian Air and Norddeutsche Landesbank Girozentrale (on behalf of the lending banks providing debt financing in respect of the two aircraft), the ongoing and open-ended nature of the Covid-19 crisis means that they are unlikely to be concluded in short order. The board is of the view that it is prudent at this time to suspend the payment of dividends and this will give DPA the best possible negotiating position in its discussions with its lenders. The Board says that its priority lies in preserving the long-term financial stability of DPA; and maintaining an appropriate level of liquidity is key to this.


What is true is they are running out of time

Expect the lights to be switched off very soon. There will then be a lot of 787's (and 787 jobs) on the market, both likely going cheap. Very sad times for the nice people at Norwegian.

And what do you base that on?
We can all pretty much see the writing on the wall.
Just would be interesting to see what you have to back it up with?

No, it means you are not playing with a full deck.

Anyways, here is a hint from the Financial times UK :

"As many as half of global airlines are seeking rent relief now, according to a note from JPMorgan Chase analysts Jamie Baker and Mark Streeter. They estimate as much as 15 per cent of revenue could disappear this year either with lessors’ blessings, or because airlines default."

"Airlines and lessors are trying to work together because when the crisis lifts, airlines will still need planes, and lessors will still need a return on their assets, Mr Khoo said. Lessors “want their customers to survive, so they’re going to be accommodating”."

Much like in the real estate business, more important than missing out on payments is the fear of having to reduce the book value of their assets.

The fact that it is LNA and LNB (aka LNBroken) that are not being paid for is not a coincidence. Norwegian management has stated that it is their desire to get rid of the -8 models, and those are the two oldest in the fleet, with LNB having been an almost constant headache since entering service.

https://www.flightglobal.com/strateg...137774.article

“HSBC believes all of the airlines it covers bar Norwegian will survive”

From what it seems like, the people within the Norwegian government who are willing to offer some help for Norwegian, want to do so on the condition that it consolidates its operations to the Scandinavia short-haul markets, with possibly some limited long haul operations to the States or popular holiday areas. The problem with this is that Norwegian is so laden with debt that a smaller airline has zero chance to earn the revenue to ever pay off the debt. Of course as we have seen, even a larger airline will struggle with ever paying it off such massive debt. So management is stuck between a rock and a hard place. IMHO I think we will see Norwegian go bankrupt, and a new Norwegian will emerge with significantly smaller operations.

I very much doubt that sub-chartering wide body jets to fly punters from Gatwick to LA for 200 quid while parking brand new 787s for ever waiting for new engines is "The real money maker". Taking punters on holiday to Malaga in 737-800s on the other hand might make a few bob.

A key question is which can hold on longer, Norwegian or Virgin. A huge amount of capacity at Gatwick is at jeopardy, TCG gone and will BA return to Gatwick at its former strength? Assuming either Norwegian or Virgin will fold, the survivor when travellers return will likely reap rich rewards.

NUK cabin crew were told at their last base meeting that only Miami was a reliable money maker for NUK. All of the other destinations break even at best. The believe has been that London was the best hope for a sizable and profitable operation, and that management felt like they were close to getting there. But the reality is that only one destination had shown itself to be consistently profitable.

Don't know of the validity of management's statements, but that is the message they presented to NUK cabin crew just a few months ago.

HSBC can “think” and “believe” all they want. Norwegian state is now the biggest shareholder in the company. Hard conditions have been put forth by the Government , not so much towards Norwegian, but directly aimed at its creditors and leasing companies. Participate in the restructuring of debt, and postpone leasing payments. Or end up with massive losses and aircraft which no one want at the moment. Norwegian could actually emerge from this crisis a lot stronger. Possibly with it's business trimmed down yes, but even more competitive than before.
”New Norwegian”, here we go

I agree. HSBC writes for investors which might indeed get wiped out, therefore their piece has some logic. Norwegian will survive simply because driving 1500km across Norway in the winter is not an option and Norwegians want to be able to go catch some sun in Malaga every now and then. On top of that who wants their basic infrastructure in the hands of Ryanair? Norway needs Norwegian; they can afford to save it so they will even If they have to nationalise it. The LH structure from European capitals to the US I am not so sure. Given time, money and a permanent fix to the RR engine issue it could become quite profitable but I fear that right now none of those are available.

SVT (Sveriges Television) reporting that Norwegian has called for an Extraordinary General Meeting to discuss a proposal to negotiate its debts into shares in the company. Source here, 16:04 8/4/20.

Good luck with that. :rolleyes:

The Norwegian state is not the largest shareholder. It is the third largest, sitting at 4.15% of the shares. Hardly a massive amount.

https://www.marketscreener.com/NORWE...13204/company/

List of shareholders(your source) is dated. Kjos is history, and already below 0.77 percent at present. Buyers are
https://m.ftf.no/?lang=en_GB and Scandi banks.

You link to the front page of the sovereign wealth fund, which of course shows nothing. When you then go to the notice page, nothing is listed either: https://www.folketrygdfondet.no/flag...tegory182.html

There has been nothing in the news either. Can you please link to a page where the ownership is more updated than the one I provided?

Looking at the Oslo stock exchange website, no major transactions have taken place. https://www.oslobors.no/markedsaktiv...S.OSE/messages

It does seem odd that you, uncle, seem to know more about the ownership structure than disclosed by the stock exchange.

I don't think is as simple or transparent as that. You are talking about the pension fund which manages 20 odd billion dollars but there is also the Oil Wealth Fund which is much much larger at the trillion dollar level. Not all holdings are owned directly by the Pension fund. Both funds combined also own many banks, companies and financial institutions which in turn also own all sorts of shares.

The trillion dollar fund is mainly for investment abroad and it is their own statement that the fund cannot own more than 10% of a listed company: https://www.nbim.no/no/oljefondet/sl...forvaltningen/ NAS is not listed anywhere there.

This is starting to sound more and more like smoke and mirrors to present some illusion that NAS is a state carrier just because it uses the name "Norwegian". It is really not. SAS was formed by Norway, Sweden and Denmark a long time ago, but Notway sold its shares in them years ago.

I have no skin in this game, but when someone claims that the Norwegian state is majority shareholder in NAS, I expect it to be backed up by hard facts. Just wishy washy speculation and insinuations.

Please, calm down. I am merely stating the facts. Shareholder lists have a delay, and the marketscreener you are using is dated. Varna is not even a shareholder anymore, but showing up as largest shareholder on your source. Folketrygfondet is at presently 5.85 percent, and thus biggest owner. As things stand now, and with the government guarantee, Norwegian is in a perfect position to sort out it's debt, and financial challenges by putting it's bondholders and creditors up against the wall.
Norway sold it's last shares in sas and made Norwegian it's main national airline. Without Norwegian, Norway would never had sold it's shares in sas

I hope this meets all of your expectations.


https://cimg7.ibsrv.net/gimg/pprune....fafd9b81b.jpeg

Maxpeck, thanks. Which source is that? I prefer to read it myself than a screenshot.

What the Norwegian state has offered is a loan guarantee, provided that NAS came live up to some pretty tough conditions including 8% equity which they are nowhere near meeting. Only a PR manager working for NAS could come up with the ludicrous notion that NAS is "in a perfect position to sort out its debt." It is the absolutely last arrow of desperation, for what they are asking to convert massive debt to shares of an imaginary value in the hope that the creditors want a lottery ticket instead of the assests that the loans are secured against. As you can see right here: https://finansavisen.no/nyheter/luft...tatt-pa-sengen the creditors did not even know about this notion. If it was that simple, I wonder why any company would ever go bankrupt if they can just hand over shares to their creditors to make the debt magically disappear?

Should this debt to equity swap work against all odds and sense, you will still end up wiping basically all current shareholders out to nothing: https://finansavisen.no/nyheter/luft...r-redningsplan

Norwegian is not a national carrier. It is and has always been a private company. The strategy now is a variant of the "privatize the profits, but socialize the losses." An argument used is that Norwegian in lieu of its name advertises Norway around the world. Pretty desperate argumentation. If you want connectivity in Norway due to the geography, Widerøe is much better suited for that. Flying Norwegians to the sun can be achieved by any airline.

For someone without a skin in this game, you seem to get mighty defensive all of the sudden. Im holding on to my original opinion, and you are entitled to your own opinion, but not your own facts, one of these just corrected and spoon feed to you by another member in here.

You're welcome. It is available from here, but to get the latest updates you have to pay.

https://tekinvestor.no/aksjonaerlister/nas_ol

Well uncle, you are about as credible as Comical Ali and I only interject because you so obviously misinform on purpose. You remind me of the PR managers that NAS like to employ. The former one, DK, was completely delusional as well. I provided you with facts, but when you are fact-resistant, one can not but wonder about your obvious lack of neutrality. This is an open forum, not an organ for company propaganda.

Thanks, Maxpeck.

You call me fact-resistant. All the while you are making your assumptions based on ”facts” that you find from media, and cherry pick to fit with your so-called ”neutrality” analysis of Norwegian. You can't even find a correct list of shareholders, I believe that is quite telling. Trying to silence someone by calling me a propaganda minister from an evil regime, reflects very poorly back at you as a person.

Judging by the way some people are writing here you would think that Norway owns 60% of the company, while they only have 6% of the shares. Hardly relevant.
Considering the market value of the company that 6% is worth less than 10 millions euros, which is the equivalent of less than peanuts, enough to run the company for maybe 2 days. With a debt of what, 6 billions eur?
The more I look at the number the more I realize that government loans are not going to be enough.
If they want to survive they need a monstrous full blown bail out, not a guaranteed loan of a few hundreds millions.

Sounding desperate …. their debt is simply horrific
https://www.bloomberg.com/opinion/ar...e-final-gambit

Damning write up but sadly very accurate.

Under water with rocks in their pockets
 

I personally can't see Norwegian getting themselves out of this mess now. To be honest, I'm surprised they managed to survive Winter 19/20 after last years' troubles, so without an enormous injection of cash from the Norwegian Government, I suspect they may be the first major airlines to come unstuck by the current crisis.