IAG acquires 4.61% stake in Norwegian
Dec 26, 2018, 4:12 am
#256
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If I was a ticket holder I would not be over worried , even if they default on a payment , it is most unlikely they will stop flying , there are businesses in America that have lasted for years without servicing their debt , the big problem is for the creditors is how to get their money back and I would have thought closing down the airline the least likely option. Look how WOW is still going despit precictions mad a couple of months ago that it had only days left
Dec 26, 2018, 4:47 am
#257
Join Date: May 2013
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If I was a ticket holder I would not be over worried , even if they default on a payment , it is most unlikely they will stop flying , there are businesses in America that have lasted for years without servicing their debt , the big problem is for the creditors is how to get their money back and I would have thought closing down the airline the least likely option. Look how WOW is still going despit precictions mad a couple of months ago that it had only days left
Though I do think they'd sell to IAG for 1 NOK before collapsing.
Dec 26, 2018, 5:03 am
#258
Join Date: May 2017
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Selling to IAG is problematic as DY competes directly with IAG's partner AY on the Finnish domestic market.
Dec 26, 2018, 6:02 am
#260
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One thing I've never understood is how Norwegian's corporate structure works. They're set up as several different airlines (DY, D8, DI, DN, DU) and I wonder what happens to the other airlines if the parent company (DY) goes bankrupt.
Selling to IAG is problematic as DY competes directly with IAG's partner AY on the Finnish domestic market.
Selling to IAG is problematic as DY competes directly with IAG's partner AY on the Finnish domestic market.
If any of those subsidiaries are profitable in their own right (and I have no idea if they are or not) then the administrators would look at selling those parts off separately.
If IAG did buy then they aren't under any obligation to operate the same services as Norwegian did and could simply shut the Finnish Domestic flights down and thus protect AY just as IAG would likely shutter the LGW routes that competed with BA routes if they bought Norwegian.
Dec 26, 2018, 6:30 am
#261
Join Date: Oct 2017
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If IAG did buy then they aren't under any obligation to operate the same services as Norwegian did and could simply shut the Finnish Domestic flights down and thus protect AY just as IAG would likely shutter the LGW routes that competed with BA routes if they bought Norwegian.
What might happen at Gatwick is very interesting. IAG might seek to move most of its LGW operations under the BA brand This would make BA easily the second biggest airline at LGW after EasyJet. However if you believe the capital markets day presentation on the positioning of the various IAG brands, the logical conclusion would be to preserve the Norwegian brand as part of IAG.
Dec 26, 2018, 10:38 am
#262
Join Date: May 2017
Posts: 2,016
What might happen at Gatwick is very interesting. IAG might seek to move most of its LGW operations under the BA brand This would make BA easily the second biggest airline at LGW after EasyJet. However if you believe the capital markets day presentation on the positioning of the various IAG brands, the logical conclusion would be to preserve the Norwegian brand as part of IAG.
Dec 26, 2018, 1:05 pm
#263
Join Date: May 2011
Posts: 2,379
The LGW operations are also something which may interest the regulators. Sure, they have competition from VS, FR and U2 on some routes, plus competition from carriers of the country they are flying to/from, but some routes might see a near IAG monopoly if IAG takes over Norwegian, and this might trigger comments from regulators.
Dec 27, 2018, 7:10 am
#265
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If I was a ticket holder I would not be over worried , even if they default on a payment , it is most unlikely they will stop flying , there are businesses in America that have lasted for years without servicing their debt , the big problem is for the creditors is how to get their money back and I would have thought closing down the airline the least likely option. Look how WOW is still going despit precictions mad a couple of months ago that it had only days left
US bankruptcy law seems to exist to protect the debtor from its obligations. European laws are much more traditional.
Jan 6, 2019, 11:45 pm
#266
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According to the Telegraph (far from a reliable source these days)
https://www.telegraph.co.uk/business...ndation-widget
IAG retains a sizeable stake and is its fourth-biggest shareholder. It is widely expected to make a fresh approach.
Norwegian’s net debt rose by around £800m to £2.5bn in the year to September 2018, forcing it to slash costs and reassure investors...
Norwegian’s net debt rose by around £800m to £2.5bn in the year to September 2018, forcing it to slash costs and reassure investors...
Jan 7, 2019, 10:40 am
#268
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Jan 7, 2019, 11:10 am
#269
Join Date: May 2016
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Meeting last Friday in Gatwick, expect something to be announced today or tomorrow unless any last minute glitches
Jan 7, 2019, 11:23 am
#270
Join Date: Oct 2015
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If someone makes an offer for Norwegian it would either be for the company (ie assuming the liabilities and assets) or just the assets (ie leaving the liabilities in the non acquired company). I do not know what is going on.