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Norwegian B737 Pilot selection (Updated)

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Norwegian B737 Pilot selection (Updated)

Old 1st Feb 2019, 08:09
  #1161 (permalink)  
 
Join Date: Dec 2010
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According german Handelsblatt reporting on Norwegian, Lufthansa and IAG :

"The German airline also re-dipped its toe in talks for Norwegian, in case it was capable of bumping rival IAG, out of the bidding. Although IAG on Thursday said it was no longer interested in Norwegian, Lufthansa sources say the move, which hammered Norwegian`s shares, was just a strategic ploy to pressure Norwegian CEO Bjørn Kjos into signing a deal"

Norwegian media today report that the Rights Issue was a plan B ready to be launched , in case the price IAG offered was below the value Kjos wanted for the company...Kjos says the Rights Issue was ready from november, but they couldn't launch before the take over talks had ended.
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Old 1st Feb 2019, 10:05
  #1162 (permalink)  
 
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IAG’s descision to hold on to their Norwegian shares is a little suspicious though...
They could have sold them in advance of announcing their withdrawal.Would have saved them a lot of cash.If they would think Norwegian not to be an interesting proposition, they would never have bothered with negotiating a deal in the first place, whatever their motives.If they though Norwegian is going to go bankrupt, why don’t they sell?Of course it’s petty cash for IAG, but obviously they are hatching their bets.Kos is not selling at a discount, that much they know by now.
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Old 4th Feb 2019, 11:41
  #1163 (permalink)  
 
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I just read:

"the (Norwegian) government pension fund holds a significant stake.
Bankruptcy would be a costly and embarrassing blow to national pride."


I didn't know that....
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Old 4th Feb 2019, 15:59
  #1164 (permalink)  
 
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6-7 years ago Mr. Kjos was outraged as the governments went in as guarantors for SAS new bank loans.

I presume he stands by his word and wouldn't accept any help from them
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Old 4th Feb 2019, 17:51
  #1165 (permalink)  
 
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TangoAlphad,

Allow Google Translate to help with your post.



The chairman of the board in Norwegian, Bjørn H. Kise, reveals a long interview with E24 +.

After months of speculation, sighting and doomsday prophecies from analysts and the media, the top management in Norwegian can finally talk about what happened in the fall of 2018. Now Kise tells what they have kept hidden.

The speculation has been going on ever since British Airways owner IAG announced its interest in Norwegian in the spring of 2018. Bjørn Kjos has confirmed that they were in talks with IAG about a sale. In addition, several others smelled at Norwegian.

- In November, a stake came on the pitch with a bid. The bid was, in isolation, good enough for us to go ahead with it and the board recommended it, says Bjørn Kise to E24.

Kjos and Kise as the largest shareholders supported the bid.

Kise cannot say who was making a bid for the company, but says that the implementation of the sale had to be done quickly.

- The bidder who was inside said that they had to have a confirmatory review of the company. They said that with the growth Norwegian has, this must be completed during 2018, says Kise.


FOR SUBSCRIPTIONS
Bjørn Kise speaks out about Norwegian sales that fell through: - Yes, I was disappointed
Kise emphasizes that he believes the board, since Norwegian is a listed company, has an obligation to handle bids and interests in the company solely with regard to the shareholders' interest. And when there was a good enough offer, they were obliged to say yes.

Tough autumn
At the same time as the board had to deal freer with Norwegian with its own problems.

Throughout the year, the company had major problems with the Rolls-Royce engines on their Dreamliner aircraft. This entailed huge costs for the company, which had to compensate customers for delays and cancellations. At the same time, the price of Bank Norwegian, which the airline is the largest shareholder, had fallen.

They either had to clarify the bid or raise money to secure the company from breaking its loan terms. This is also the reason why the issue, which Norwegian announced on Tuesday, was waiting for it, according to Norwegian summit.

<p> Bjørn Kjos at Tuesday's press conference when Norwegian announced a new issue. </ P>
Bjørn Kjos at Tuesday's press conference when Norwegian announced a new issue. PHOTO: FRODE HANSEN VG
- In such a bid, you have complete confidentiality. If we said anything, the bid would fall away, says Kise, and continue:

- If you raise capital in a listed company, all information must be distributed and all shareholders must be equated. Thus, we had handcuffs on us for weeks. We could not carry out an issue.

The bid was clear and approved by the board, together with Bjørn Kjos and Bjørn Kise.

- Both Bjorn Kjos and I thought the bid would go through.

The clock ticked
Eventually problems appeared. The company that wanted to buy Norwegian postponed the date on which the sale was to be formalized.

- The stakeholder exposed and exposed. There were large turbulences in the market in December and brexit was not clarified. It happened a lot, says Kise.

The time went by and Norwegian started to get bad. They needed money. They secretly started work on the emission plans. In case.

- We had to make sure we had liquidity and capital. We have never been in breach of the credit limit and will never be the same, says Kise.

If they talked about the bid openly, the stakeholder would withdraw from the bid.

Norwegian had no time to wait and had to raise money in the market. Tuesday's issue notice has been scheduled since Christmas.

- When the stakeholder postponed the bid, and it was suddenly pushed monthly into the future, we perceived that it was not formalized. Then we just said, "Now we give away gas. Stand Alone. "

- You go on alone?

- Yes, Kise says.

In the interview with E24 +, Bjørn Kise says more about why a Norwegian sale, which seemed so secure, fell through. In addition, he opens up his own and Bjørn Kjos' future in the company. Read the chairman's story of what happened when Norwegian was a hair width from being sold at the end of 2018.
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Old 4th Feb 2019, 22:30
  #1166 (permalink)  
 
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This certainly won’t be helping either -
https://www.thetimes.co.uk/edition/b...-air-6jbqn5n02
Credit card processing companies withheld payments from Norwegian Air Shuttle amid fears that the carrier might go bust, putting more pressure on its precarious finances.

Fingers crossed it all works out.
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Old 8th Feb 2019, 18:59
  #1167 (permalink)  
 
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Hello everyone - Looks like LGW will be preserved in this round of cost saving measures and base binding. Great news for the UK crew community A joined up approach in the UK to ensure all crew have jobs this year. moving forward, the future may not be orange but it can still be bright - get behind the UK unions . SM1!
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Old 9th Feb 2019, 11:03
  #1168 (permalink)  
 
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Or dust off the CV and jump first.
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Old 9th Feb 2019, 11:07
  #1169 (permalink)  
 
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I appreciate the optimistic view of the company, but the numbers look god awful.



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Old 9th Feb 2019, 11:39
  #1170 (permalink)  
 
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I think they’ve realised now their model just doesn’t work. They’re now going to be flying to SFO and MIA instead of OAK and FLL respectively. Costs are going to rise and so the ticket prices are going to have to as well. There is no low cost long haul only low fares long haul and Norwegian have proved it doesn’t make money. The big problem they have with increasing yield is they’ll be a small player doing the exact same thing as the big boys but without the hard business product and without the frequencies and the economies of scale. It’s going to be really, really hard for them from here. It’s a vanity project from Kjos gone bad. There is a reason why O’Leary never expanded Ryanair into the Long Haul market (and easyJet show no interest either) what we are seeing with Norwegian today is the reason why.
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Old 20th Feb 2019, 15:43
  #1171 (permalink)  
 
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Originally Posted by RexBanner View Post
I think they’ve realised now their model just doesn’t work. They’re now going to be flying to SFO and MIA instead of OAK and FLL respectively. Costs are going to rise and so the ticket prices are going to have to as well. There is no low cost long haul only low fares long haul and Norwegian have proved it doesn’t make money. The big problem they have with increasing yield is they’ll be a small player doing the exact same thing as the big boys but without the hard business product and without the frequencies and the economies of scale. It’s going to be really, really hard for them from here. It’s a vanity project from Kjos gone bad. There is a reason why O’Leary never expanded Ryanair into the Long Haul market (and easyJet show no interest either) what we are seeing with Norwegian today is the reason why.
Apparently you are not the only one to think their model doesn't work:
https://www.bloomberg.com/news/artic...f-rights-issue
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Old 20th Feb 2019, 16:14
  #1172 (permalink)  
 
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It’s normal for shareprices to go down during a rights issue, because of the discount.
Whether they recover is more important...
I hope Norwegian gets through this difficult period and can start increasing their profitability.
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Old 22nd Feb 2019, 11:48
  #1173 (permalink)  
 
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Originally Posted by RexBanner View Post
I think they’ve realised now their model just doesn’t work. They’re now going to be flying to SFO and MIA instead of OAK and FLL respectively. Costs are going to rise and so the ticket prices are going to have to as well. There is no low cost long haul only low fares long haul and Norwegian have proved it doesn’t make money. The big problem they have with increasing yield is they’ll be a small player doing the exact same thing as the big boys but without the hard business product and without the frequencies and the economies of scale. It’s going to be really, really hard for them from here. It’s a vanity project from Kjos gone bad. There is a reason why O’Leary never expanded Ryanair into the Long Haul market (and easyJet show no interest either) what we are seeing with Norwegian today is the reason why.
Norwegian eyes to capture marketshares from British Airways on UK-US traffic. British Airways holds 39% markedshare on UK-US representing 15% of the UK airline worldwide production. Norwegian has established itself as the number one airline between Europe and New York and is among other consolidating its Florida bases to Miami. Next step should be to increase frequencies on routes to the US from 2-3-4-5 weekly into daily or more than one daily ops. Norwegian will continue to disrupt transatlantic traffic and chase the full service carriers.
https://www.oag.com/blog/the-norwegian-effect
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Old 23rd Feb 2019, 06:55
  #1174 (permalink)  
 
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That sounds like one of Mr. K´s press releases.
And the band played on.
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Old 2nd Mar 2019, 10:24
  #1175 (permalink)  
 
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Well for all hype about market retrenchment there seems little sign of it happening on the ground, the Canary Island base closures don’t happen until October/November, PMI happens next month, but in the main the flights are run in reverse, the US bases of PVD & SWF were no more than a large cupboard a copier/scanner and a kettle that no one used.

There are no signs of flight deck redundancy with most being redeployed to other bases/fleets LGW crew numbers will increase and a two year pay deal with 0% this year and 5% or the higher of RPI next year signed off with some tweaks to working patterns 5 on 4 off being the main one agreed. Plenty of people leaving of course, in the main to the benefit of BA, Virgin and Jet2, the general view is that recruitment will start again soon simply because not all can or will move base, but these will be a slow leak of people, going to FR and getting offered the Russian front means you might as well hang in at Norwegian until something closer to home comes up.

The general view is that it was IAG who put the bid in, they know the game and are utterly ruthless, knowing that Norwegian couldn’t go to the market to raise capital during the agreed bid process thus dragging out to the point that Norwegian might collapse, which would suit the BA part of IAG just as well as acquiring the airline and cost less.

Norwegian have learnt that lesson the hard way, few doubt another bid won’t turn up this year, IAG would likely then bid again especially if it was Virgin (Delta) or Lufthansa, in that outcome IAG would have to pay more.

Off course Norwegian has to get through the winter & Brexit, but even that might be over in the next 10 days or at least the fear of no deal and that will drive booking and market confidence

Norwegian will still take delivery of 5 new Dream liners this year (two delivered already) taking its fleet to 37 and another 16 B738 MAX aircraft which will replace older NG’s almost one for one.

The rights issue is fully underwritten and current shareholders can buy at half the current market price so they shouldn’t have to fall back on the underwriter

The fog of doubt should lift by May/June if it can get that far....

Last edited by EIFFS; 2nd Mar 2019 at 10:35.
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Old 2nd Mar 2019, 21:33
  #1176 (permalink)  
 
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EIFFS

Lets hope so, for the good guys and gals at NAX, and my NAX shares

Having gone through turn arounds, recessions and even a major bankruptcy I think all signs for a takeover is present - rather a takeover than the alternative.

When I say alternative I don’t mean the present shape of NAX, unfortunately.

Is the roumer about a so called Focus2019 plan correct? Saving 3 Bn in one year is to me another indication of preparation for a sale. No company, that I’ve heard off in aviation were able to save or cost reduce the amount post yearly deficit. Sure it sounds nice and the beancounters and their spreadsheets can’t wait for all the savings to materialize - but it won’t...

If a 3 Bn saving or cost reduction program in a LowCost company were legimite what is it silently telling us? NAX has, as a LowCost company done things very very wrong recently ? No they havent! Again, if this roumered saving or cost reduction plan materialzes without union involvement I will be amazed.

Another thing, the guarnteed underwriting from the Norwegian billionaire from Cypres. I would love to see what his terms and conditions were for the guarnteed underwriting. My bet is, if IAG makes another run at NAX the shares rise is a pleasent forthcomming for Mr Fredriksen . On the contrary, should NAX go tits up my bet is Mr Fredriksen owns a bunch of rednosed metal.

He will make money regardless is my bet.

A third thing which is why I think a sale is still a fairly realistic outcome. During 2018 Xmass some analytics were raving on about an imminent NAX collapse. Shockingly they were right . NAX made a statement Xmass day I believe saying the equity were stable - that was correct, stable and dangerously low, nearly breaching the debt covenants. Making money 2-3 out of 12 months won’t do it long run - something, somewhere must be adressed. Let’s see if the magic from last years Q2 will carry over to Q2 2019 - easter falls late this year like in 2017.

After IAG allegedly gave up on NAX the head of the board openly in an interview stated that NAX remained open to consolidation. Makes you think if that recent emission is enough long term.

The positive thing is that it seems the NAX management has finally come to the conclusion that something is up..! Let’s see how it pans out. My bet is still on IAG or atleast a sale........

Either way mate, I will keep buying NAX tickets, love the product and I like the way NAX stirred up the north atlantic market ...

Beers on me

Brgds
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Old 4th Mar 2019, 11:09
  #1177 (permalink)  
 
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Smirf420

I think 3bn sounds a lot and they’ve only said that internally the external figure is 2bn which also sounds a lot, but this is a NOK figure, which equates to roughly £200m give or take...

That is not actually that much and if you stop the growth and the upfront costs of new pilots cabin crew bases and routes and concentrate on frequency then its a different set of costs, the base closures will result in fewer pilots and cabin crew, but not redundancy and its attendant costs, lots of people are already working their notice and Norwegian will need to open up recruitment probably in early April for short haul and a good few on short haul will transfer to long haul.

If they can avoid a re run of double day off payments, wet leases and hedge loss ( the recent price increase of oil will work in their favour as the book loss on hedge position will be less than expected and they took that hit December) winter so far has not been that disruptive either in Europe or the US and they now have sufficient 789’s to cover the program even allowing for the couple that are parked at any one time awaiting RR to sort out the upgrade.

It looks like BALPA have settled for 2019/20 in LGW 0% increase in 2019 but significant life style improvements with extra days off and 5/4 roster for most and the higher of RPI or 5% for 2020, but they have to get that far.

Lets hope winter does not have sting in its tail ......
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Old 8th Mar 2019, 22:25
  #1178 (permalink)  
 
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Stock expansion successful!

Dagens Næringsliv in Oslo reports that the 90,8 million new stocks issued in Norwegian is "Oversigned" by over 100%.
198 million stocks are asked for, only 90,8M available!
This secures the 3 billion Nkr they planed for in the stock expansion.( 300 mill Euro)
Good!!
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Old 9th Mar 2019, 08:16
  #1179 (permalink)  
 
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Until the next time they come cap in hand to the shareholders because they’ve burnt through it all in a matter of months.
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Old 9th Mar 2019, 11:45
  #1180 (permalink)  
 
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Who will be right...?

http://www.travelweekly.co.uk/articl...airline-bosses

O’Leary described Norwegian’s low-cost long-haul business model as “one that is going to fail, particularly with high oil prices”.

He said: “The more they grow on long haul, the more money they lose. They keep trying to generate cash. They keep growing and they keep losing money.

“It is a business model that is going to fail.”

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