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.”

https://www.flightglobal.com/news/ar...an-bid-456397/

"It's a pity – I still hope they succeed," he adds, citing concerns around recent financial challenges faced by Norwegian, particularly regarding fuel costs and hedging.

But Walsh goes on to praise the "exceptional job" done by Norwegian's chief executive Bjorn Kjos, such as the proof-of-concept work relating to long-haul low-cost operations.

"He's proven, if not to everybody but certainly to us, that the market exists and the customer will embrace the business model."

O’Leary has always had a real chip on his shoulder about Norwegian. Not quite sure, if he’s that confident of his own business model, why he has to go on and on about DY so much? Maybe I’ve missed it, but he doesn’t seem to bitch about EZY in quite the same way.

MOL doesn’t like to admit FR lost a lot of pilots to DY a couple of years ago which caused the shortage and cancellations at FR - not rostering issues which were given as the excuse then by him

It really took off when DY choose EasyJet over ryanair regarding the feeder agreement from DY LH to EZY SH. The negotiation had been going on for some time, with ryanair being the frontrunner for a deal(at least according to MOL) In the end, Kjos went for EasyJet and called MOL greedy in the process. MOL turned to the media, and went on and on about DY going bust. Kjos then went public, and said ryanair tried to buy the company last year. MOL turned bitter and the rest is history..

Mr Walsh also said in the same interview that Norweigian faces “very, very significant challenges”

Struggling to understand Walsh’s comments. So Kjos has proven that there is a market for people who can’t normally afford to fly long haul to pay £170 to fly to Los Angeles, well no excrement, Sherlock!! Just like there are people who want to pay £200 for a 65” LG OLED TV, trouble is it doesn’t make money! Surely that’s the whole point here. How exactly has Kjos proved that low cost long haul works when his company is losing money hand over fist? The only thing he has proved is that there are people willing to pay a bargain basement unbundled fare, which should have been bloody obvious from the beginning. The thing we definitely know is that it still requires a hard business product to actually pay for the thing and start to make money. Norwegian don’t have this and won’t until they change their business model. And we’re back where we started...

Time will tell, Rex .....cost cutting in progress to sort stuff out.

incidentally, you didn’t used to go “ Direct bondi “ ina previous life did you ?

Yep a hill to climb just got a lot bigger

Everyones looking at the increasingly dire situation @ Norwegian , but what about Jet2 ‘s financial state? Heavily indebbted to its creditors , and huge orders for 737s 800s . Maybe this type will also be grounded next ?

Wow. Not sure you could have misunderstood the situation more if you tried. I don’t work for them, but I gather Jet2 are doing very nicely, i.e. they are profitable. Norweigian on the other hand...

I must have missed the announcement, what huge orders do Jet2 have? The last of their order(s) has already been delivered.