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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/ |
Originally Posted by samca
(Post 10510100)
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/ |
I still don’t understand them opening all these new routes as opposed to consolidating the current business. Time will tell and the sharks will circle. |
Shares of Norwegian climbing up to 9% today again 🤔 |
Originally Posted by CXKA
(Post 10510199)
I still don’t understand them opening all these new routes as opposed to consolidating the current business. |
Originally Posted by RexBanner
(Post 10510192)
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. |
After they had a look in the books and made an offer in accordance with what they saw in those books. When asked for a better offer they ran away.
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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 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. |
Originally Posted by directmisbi
(Post 10526891)
Long Haul fleet now making money |
Originally Posted by dirk85
(Post 10526908)
Source? The financial reports seem to indicate otherwise. 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.. |
Originally Posted by Bonway
(Post 10526976)
Which financial reports would those be, and can you post copies?
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Originally Posted by directmisbi
(Post 10526978)
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.. |
According to this, it does not appear they are making money from LGW long haul at all...
https://i.ibb.co/3MxM99x/IMG-8551.jpg |
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