IAG OPA Norwegian
Thread Starter
Joined: Apr 2008
Posts: 1
Likes: 1
From: Worldwide
IAG OPA Norwegian
what do you think guys? Will IAG make a macro low cost company with the structure of Norwegian plus the letter of intention about 200 airplanes 737MAX?
https://www.rte.ie/news/business/201...an-air-shares/
https://www.rte.ie/news/business/201...an-air-shares/
Joined: Feb 2005
Posts: 995
Likes: 103
From: Botswana
what do you think guys? Will IAG make a macro low cost company with the structure of Norwegian plus the letter of intention about 200 airplanes 737MAX?
https://www.rte.ie/news/business/201...an-air-shares/
https://www.rte.ie/news/business/201...an-air-shares/
Joined: Mar 2010
Posts: 66
Likes: 0
From: London
I would be extremely surprised at this point and that’s putting it mildly. Why take on all that debt? IAG ran away after getting access to the books back in December, since when Norwegian’s financial position has only worsened. Media tittle tattle at this point I think.
Joined: Oct 2016
Posts: 2
Likes: 0
From: Close to an airport
Not true.
IAG made an offer which was refused. They made a better offer which was accepted. However the buying process took a long time due to Brexit issue. As an offer was made, the company could no longer go ask for bank guarantees. At some point, the cash flow become so low that the actual bank loan could not be guaranteed anymore (it could but then the cost would dramatically increase). as such the company had to pull out of the deal to guarantee a safe continuity of the operation. End of December they decided to continue as stand alone due to this reason.
It does not mean that IAG is not anymore interested in Norwegian. if not IAG, could be LH who would gain a major hub in LGW which is still a major hub for IAG.
To be continued....
IAG made an offer which was refused. They made a better offer which was accepted. However the buying process took a long time due to Brexit issue. As an offer was made, the company could no longer go ask for bank guarantees. At some point, the cash flow become so low that the actual bank loan could not be guaranteed anymore (it could but then the cost would dramatically increase). as such the company had to pull out of the deal to guarantee a safe continuity of the operation. End of December they decided to continue as stand alone due to this reason.
It does not mean that IAG is not anymore interested in Norwegian. if not IAG, could be LH who would gain a major hub in LGW which is still a major hub for IAG.
To be continued....
Joined: Dec 2010
Posts: 4
Likes: 2
From: Limbo
IAG made two offers, both were rejected as they “undervalued” the company according management. Another offer came fourth, this time good enough for a sale, but buyer postponed and postponed “due brexit”. This buyer has never been disclosed. In the end management decided to “stand alone” and another emission followed, one which had been planned all along if the sale didnt go ahead.
The focus has shifted from that of expansion, to one of profitability. Long Haul fleet now making money, and fleet almost complete with only a couple of 787 to go for a grand total of 42.
Still challenges with the 787 engines and obviously the 18 max on the ground, but winter will be nowhere near as bad as last year according CFO. Canaries bases to remain open, redundancies avoided(apart from a few in the US max bases) and we have avoided a reduction in salaries, terms and conditions.
The focus has shifted from that of expansion, to one of profitability. Long Haul fleet now making money, and fleet almost complete with only a couple of 787 to go for a grand total of 42.
Still challenges with the 787 engines and obviously the 18 max on the ground, but winter will be nowhere near as bad as last year according CFO. Canaries bases to remain open, redundancies avoided(apart from a few in the US max bases) and we have avoided a reduction in salaries, terms and conditions.
Last edited by directmisbi; 24th July 2019 at 12:56.
Joined: Dec 2010
Posts: 4
Likes: 2
From: Limbo
A direct quote from the CEO to shareholders and media in the last financial presentation.
The financial reports will not state profit or loss for long haul, only the company as a whole. The goal for 2019 was a return to profitability something that now seems unlikely given the situation with the max and the engine woes on the 787. The company is on the right track however and I am sure the company will be making money from 2020 and going forward, compensation from Boeing or not..
The financial reports will not state profit or loss for long haul, only the company as a whole. The goal for 2019 was a return to profitability something that now seems unlikely given the situation with the max and the engine woes on the 787. The company is on the right track however and I am sure the company will be making money from 2020 and going forward, compensation from Boeing or not..
Joined: Jul 2007
Posts: 2,731
Likes: 53
From: World
Joined: Jul 2007
Posts: 2,731
Likes: 53
From: World
A direct quote from the CEO to shareholders and media in the last financial presentation.
The financial reports will not state profit or loss for long haul, only the company as a whole. The goal for 2019 was a return to profitability something that now seems unlikely given the situation with the max and the engine woes on the 787. The company is on the right track however and I am sure the company will be making money from 2020 and going forward, compensation from Boeing or not..
