Norwegian burning cash!
Join Date: Aug 2017
Location: UK
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There is much speculation as to where Norwegian are at at the moment, we should get a much clearer idea on the 7th when the management announce their plans for culling unprofitable routes and maybe bases as well, all new course have been frozen (differed not cancelled) and some who had already started put back into the holding pool.
Their cost cutting project (named FOCUS2019) is being rolled out, current casualties in addition to the above include funding for staff xmas parties removed, senior management pay freeze and a LGW(SH) pay offer of 0% in other words a real world cut that will off course be rejected by BALPA.
One could argue that they have been unlucky with dream liner engine farce, forcing them into expensive wet leases when they have the crews inlace to fly their own but partly grounded fleet, ditto short term oil price spike catching them off guard and then taking a heavy loss on poorly planned hedging, add to the mix LGW shutdown in the days before xmas and the list goes on, but you make own luck, good or bad and if you keep pushing growth and assuming every other factor will be fine you’re asking to get your finger burnt.
The LGW drone attack might not be as bad as first thought, yes some diversions and a lot of cancelled flights but since it reopened nearly every flight as been 100% full and of course a days worth flying didn’t happen... a lot will depend on just how much compensation is paid out, but given the CAA as ruled it as exceptional circumstances then this might fall on the passengers insurance as the first port of call.
If one looks at flight radar24 with the Norwegian filter selected it gives some idea of the scale of trans atlantic flying, which part from Europe to the US on the dreamliner also includes DUB/SNN/EDI to PVD/SWF plus the French Caribbean to FLL/JFK/PVD/YHM.
I think i'ts likely they’ll scrape through, but they do need a period of consolidation and stopping doing daft stuff just because they can.
Their cost cutting project (named FOCUS2019) is being rolled out, current casualties in addition to the above include funding for staff xmas parties removed, senior management pay freeze and a LGW(SH) pay offer of 0% in other words a real world cut that will off course be rejected by BALPA.
One could argue that they have been unlucky with dream liner engine farce, forcing them into expensive wet leases when they have the crews inlace to fly their own but partly grounded fleet, ditto short term oil price spike catching them off guard and then taking a heavy loss on poorly planned hedging, add to the mix LGW shutdown in the days before xmas and the list goes on, but you make own luck, good or bad and if you keep pushing growth and assuming every other factor will be fine you’re asking to get your finger burnt.
The LGW drone attack might not be as bad as first thought, yes some diversions and a lot of cancelled flights but since it reopened nearly every flight as been 100% full and of course a days worth flying didn’t happen... a lot will depend on just how much compensation is paid out, but given the CAA as ruled it as exceptional circumstances then this might fall on the passengers insurance as the first port of call.
If one looks at flight radar24 with the Norwegian filter selected it gives some idea of the scale of trans atlantic flying, which part from Europe to the US on the dreamliner also includes DUB/SNN/EDI to PVD/SWF plus the French Caribbean to FLL/JFK/PVD/YHM.
I think i'ts likely they’ll scrape through, but they do need a period of consolidation and stopping doing daft stuff just because they can.
Join Date: Aug 2007
Location: Ireland
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Air Europe, Dan Air weren't even close to being half as big as Norwegian is today. Air Berlin had a 100% leased fleet, while Norwegian's fleet is 70% owned. Pan Am got hit by deregulations and TWA got bought up. Not to name the fact that Air Berlin, Pan Am and TWA had completely different business models.
Great comparison mate..
Great comparison mate..
Join Date: Oct 2006
Location: southern spain
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Of course the flights are nearly 100 per cent full, a lot of delayed passengers from the Gatwick debacle. Still grave concerns - robbing Peter to pay Paul comes to mind.
