Norwegian to fly between UK, Ireland and U.S. NE Coast cities. from Summer 2017.
May 16, 2018, 4:02 pm
#376
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Of course, but that’s not much different to the fact that thousands of companies from all over the USA plant their ‘flag of convenience’ in Delaware for incorporation purposes because of the favourable structure there.
Ultimately it boils down to whether the particular practice is compliant or not, and here the court found that it was.
Ultimately it boils down to whether the particular practice is compliant or not, and here the court found that it was.
May 17, 2018, 1:26 am
#377
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I guess it's just coincidental, then, that each of Delta, United and American Airlines are incorporated in Delaware.
A state with no currently-active commercial airport, let alone having service provided by any of the airlines incorporated there!!
A state with no currently-active commercial airport, let alone having service provided by any of the airlines incorporated there!!
May 17, 2018, 7:02 pm
#378
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I guess it's just coincidental, then, that each of Delta, United and American Airlines are incorporated in Delaware.
A state with no currently-active commercial airport, let alone having service provided by any of the airlines incorporated there!!
A state with no currently-active commercial airport, let alone having service provided by any of the airlines incorporated there!!
May 21, 2018, 11:48 am
#379
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So the Norwegian end-game seems to be playing out here. BA is willing to pay something for Norwegian's assets, but not as much as Norwegian would like them to pay. Of course, unless there is an "idiot suitor" lurking in the wings, BA is holding all the cards, because Norwegian would probably go out of business in the next year if they don't sell. Honestly, I'm not sure why BA is willing to pay anything here, but obviously they see value in the assets that most of us don't see. For his part, the Ryanair CEO is unhappy because he wants Norwegian to die a natural death and not get rescued (which is obviously the best outcome for Ryanair).
Stay tuned. Obviously this is an unstable and unpredictable situation. Nobody should be buying Norwegian Air tickets here for travel beyond summer. My hunch is that Norwegian sells to BA because this is truly a gift from God for Norwegian shareholders. Instead of getting zero for their shares, they'll get decent money. They would be truly lucky fools (nobody should ever have invested a nickel in their foolish business plan).
https://www.bloomberg.com/news/artic...bor-costs-jump
https://uk.finance.yahoo.com/news/me...055230465.html
https://finance.yahoo.com/m/78a3148c...rican-get.html
Stay tuned. Obviously this is an unstable and unpredictable situation. Nobody should be buying Norwegian Air tickets here for travel beyond summer. My hunch is that Norwegian sells to BA because this is truly a gift from God for Norwegian shareholders. Instead of getting zero for their shares, they'll get decent money. They would be truly lucky fools (nobody should ever have invested a nickel in their foolish business plan).
https://www.bloomberg.com/news/artic...bor-costs-jump
https://uk.finance.yahoo.com/news/me...055230465.html
https://finance.yahoo.com/m/78a3148c...rican-get.html
May 21, 2018, 1:22 pm
#380
Join Date: Jan 2010
Posts: 9,307
So an unsubstantiated rumour and two reports on a comment made by Michael O'Leary, who has never made a misleading statement in his life.
You never mentioned that "Norwegian dismissed O'Leary's comments as having "no root in reality"".
You never mentioned that "Norwegian dismissed O'Leary's comments as having "no root in reality"".
May 21, 2018, 4:31 pm
#381
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So the Norwegian end-game seems to be playing out here. BA is willing to pay something for Norwegian's assets, but not as much as Norwegian would like them to pay. Of course, unless there is an "idiot suitor" lurking in the wings, BA is holding all the cards, because Norwegian would probably go out of business in the next year if they don't sell. Honestly, I'm not sure why BA is willing to pay anything here, but obviously they see value in the assets that most of us don't see. For his part, the Ryanair CEO is unhappy because he wants Norwegian to die a natural death and not get rescued (which is obviously the best outcome for Ryanair).
Stay tuned. Obviously this is an unstable and unpredictable situation. Nobody should be buying Norwegian Air tickets here for travel beyond summer. My hunch is that Norwegian sells to BA because this is truly a gift from God for Norwegian shareholders. Instead of getting zero for their shares, they'll get decent money. They would be truly lucky fools (nobody should ever have invested a nickel in their foolish business plan).
https://www.bloomberg.com/news/artic...bor-costs-jump
https://uk.finance.yahoo.com/news/me...055230465.html
https://finance.yahoo.com/m/78a3148c...rican-get.html
Stay tuned. Obviously this is an unstable and unpredictable situation. Nobody should be buying Norwegian Air tickets here for travel beyond summer. My hunch is that Norwegian sells to BA because this is truly a gift from God for Norwegian shareholders. Instead of getting zero for their shares, they'll get decent money. They would be truly lucky fools (nobody should ever have invested a nickel in their foolish business plan).
https://www.bloomberg.com/news/artic...bor-costs-jump
https://uk.finance.yahoo.com/news/me...055230465.html
https://finance.yahoo.com/m/78a3148c...rican-get.html
Mainly thinking Scandinavian Airlines here, while the numbers have improved, they are not the model of airline financials either.
May 21, 2018, 7:00 pm
#382
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Um, have you seen Norwegian's financials? Have you checked the price of oil lately? Feel free to believe whatever you want, but hoping and wishing isn't going to save this failing airline.
May 21, 2018, 8:25 pm
#383
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I don't doubt that there are some shake ups coming in the European airline landscape. I am not sure it is as clear cut as all that. Norwegian is definitely a candidate, but there are others that are also hanging on the edge. If other candidates fold first Norwegian may get more breathing room
Mainly thinking Scandinavian Airlines here, while the numbers have improved, they are not the model of airline financials either.
Mainly thinking Scandinavian Airlines here, while the numbers have improved, they are not the model of airline financials either.
I don't think SAS is anywhere near folding. I can think of one or two that could be in big financial doo doo with a fuel hike, but none in a worse shape than Norwegian.
May 22, 2018, 3:09 pm
#384
Join Date: Jan 2010
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Yes, and I don't 100% disagree with you, but referring to articles and only mentioning the bits that suit you makes your posts lose credibility.
May 22, 2018, 5:32 pm
#385
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May 22, 2018, 8:59 pm
#386
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Remember that Bjorn Kjos owns 27% of the shares and he doesn’t want to sell up; it's his baby after all. And IAG owns 4.6%. So any bid - hostile or not - would have to be accepted by almost 67% of the remaining shareholders, some of whom are Bjorn’s buddies.
There’s no point in artificially inflating the offer. The offer reflects the state of Norwegian (terrible) and debt that IAG would assume (huge for Norwegian, manageable for IAG). Now It’s take it or leave it, and it remains on the table until Norwegian runs out of money and/or a white knight bid shows up.
Aside from IAG I don’t see any airline company robust enough financially and with a fit for the long haul business. RyanAir, Wizz Air and EasyJet are strong enough but likeky don’t need/want the long haul business, and Lufthansa would be a potential fit but is busy with bidding for Alitalia and absorbing the carcus of Air Berlin.
There’s no point in artificially inflating the offer. The offer reflects the state of Norwegian (terrible) and debt that IAG would assume (huge for Norwegian, manageable for IAG). Now It’s take it or leave it, and it remains on the table until Norwegian runs out of money and/or a white knight bid shows up.
Aside from IAG I don’t see any airline company robust enough financially and with a fit for the long haul business. RyanAir, Wizz Air and EasyJet are strong enough but likeky don’t need/want the long haul business, and Lufthansa would be a potential fit but is busy with bidding for Alitalia and absorbing the carcus of Air Berlin.
May 22, 2018, 9:26 pm
#387
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1) use a credit card, and
2) buy trip cancellation insurance
I don't share your confidence that they can make it through this summer … April's performance numbers were horrendous. Year over year, load factor was -3.6%, yield was -16%, and RASK (metric version of RASM) was -20%. If May's numbers look this bad, Norwegian's lifespan will shrink considerably.
May 22, 2018, 11:27 pm
#388
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May 23, 2018, 7:14 am
#389
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I don't share your confidence that they can make it through this summer … April's performance numbers were horrendous. Year over year, load factor was -3.6%, yield was -16%, and RASK (metric version of RASM) was -20%. If May's numbers look this bad, Norwegian's lifespan will shrink considerably.
I did see a couple of recent stories about Norwegian Air in the Norwegian media that I translated and tried to read. Google' Norwegian translate program seems less than perfect, but the gist of what I read indicated that an IAG purchase of Norwegian was not imminent. Walsh apparently believes that time is on his side, and that seems pretty obvious to me. This would also tend to suggest that Norwegian has at least a few more month of life left in it.
May 23, 2018, 9:31 pm
#390
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https://www.norwegian.com/globalasse...april-2018.pdf
Assuming CASK as Norwegian has projected for 2018 at NOK 0.415, that pans out to an operating loss for April of NOK 1B, and -43% operating margin. That’s more than they lost in the whole of Q2-17 (NOK 863M).
Compare that to (the terrible) April 2017. Using the reported Q2 CASK of NOK 0.43 the operating loss was NOK 375M and -19% operating margin.
On those numbers I share your pessimism about whether they’ll last the summer, though I reckon they’ll scrape through with some more asset sales, and then maybe post a small profit in Q3. But the fall/winter (Q4), no chance.
Last edited by usbusinesstraveller; May 24, 2018 at 12:26 am