Norwegian to fly between UK, Ireland and U.S. NE Coast cities. from Summer 2017.
Dec 22, 2018, 4:09 am
#466
Join Date: Nov 2005
Programs: BA Gold, TP Silver
Posts: 888
seems weird that you advocate buying tickets then (or is your title missing a negation?)
Dec 22, 2018, 5:04 am
#467
Join Date: Jan 2017
Location: Portland OR
Programs: United 1K 1MM, Marriott Bonvoy Platinum, Hilton HHonors Gold
Posts: 560
New worries this week about the ability of Norwegian to keep flying. A Norwegian newspaper reports that the airline will likely violate their loan covenants on January 1.
Oh, and they've probably lost more than $200 million on a fuel hedge this quarter.
My guess is this isn't quite the end of Norwegian, but that's a guess and not a certainty. I would NOT buy a ticket to travel on them for next year right now.
https://www.newsinenglish.no/2018/12...-more-trouble/
Oh, and they've probably lost more than $200 million on a fuel hedge this quarter.
My guess is this isn't quite the end of Norwegian, but that's a guess and not a certainty. I would NOT buy a ticket to travel on them for next year right now.
https://www.newsinenglish.no/2018/12...-more-trouble/
Dec 22, 2018, 10:55 pm
#468
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,421
Yeah, a great idea to hedge fuel just before prices plummeted. That's going to set them up just fine. They had 3.2 billion NOK in liquidity at the end of Q3, and expect to take a 1.44 billion NOK hit in wrong way hedges. That puts them right back in bond covenant territory just as they go into the weakest quarter. They desperately need to get their A320 neo/737 MAX orders off the books.
Dec 23, 2018, 11:06 am
#469
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
Yeah, a great idea to hedge fuel just before prices plummeted. That's going to set them up just fine. They had 3.2 billion NOK in liquidity at the end of Q3, and expect to take a 1.44 billion NOK hit in wrong way hedges. That puts them right back in bond covenant territory just as they go into the weakest quarter. They desperately need to get their A320 neo/737 MAX orders off the books.
They're desperately trying to sell as many aircraft as possible, but I'd wager that all offers are very lowball.
They've also discontinued all 787 pilot training classes for 2019.
Dec 23, 2018, 11:14 am
#470
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
Your perspective is tainted by your geolocation - either Aussie or Kiwi. Australia's economy is heavily reliant on commodity prices.
As far as airlines that have shut down, it's all been upstart LCCs with terrible business models. Norwegian and WoW will go under because they cater to the TATL flip flop and backpack crowd. That's only profitable for ~4 months/yr. The rest of the year is a financial bloodbath, as Norwegian and WoW are learning.
The soon-to-be demise of Norwegian and WoW will be good for the remaining airlines because sanity will be able to return to ticket pricing.
As for a recession, possible. Depression? No Freaking Way - the world's central banks have already proven that they dump unlimited liquidity into the economy to stave off an economic depression even though having one would eliminate a lot of misallocation of capital.
Any recession will be mild, again, due to world central banks tinkering with their economies.
As far as airlines that have shut down, it's all been upstart LCCs with terrible business models. Norwegian and WoW will go under because they cater to the TATL flip flop and backpack crowd. That's only profitable for ~4 months/yr. The rest of the year is a financial bloodbath, as Norwegian and WoW are learning.
The soon-to-be demise of Norwegian and WoW will be good for the remaining airlines because sanity will be able to return to ticket pricing.
As for a recession, possible. Depression? No Freaking Way - the world's central banks have already proven that they dump unlimited liquidity into the economy to stave off an economic depression even though having one would eliminate a lot of misallocation of capital.
Any recession will be mild, again, due to world central banks tinkering with their economies.
Dec 24, 2018, 10:04 am
#471
Join Date: Jan 2017
Location: Portland OR
Programs: United 1K 1MM, Marriott Bonvoy Platinum, Hilton HHonors Gold
Posts: 560
Well, Norwegian has jumped into action and announced plans to keep the bond holders onside. Who makes these announcements on Christmas Eve if they’re not in deep doggy doo doo?
Most of what’s announced below is regurgitating previous announcements (cost cutting plan, sale of 5 Airbus). The one new thing here is refinancing of one Dreamliner, which will put around $30 million (close on 300 million NOK) onto the balance sheet. They’re also going to make “significant changes” to their route portfolio which will be announced on April 25th.
https://www.reuters.com/article/us-n...-idUSKCN1ON0MX
https://www.bloomberg.com/news/artic...-it-cuts-costs
Is that enough to placate the bond holders? Maybe, but not for long until they see more action. They’re still treading water, and I wouldn’t be touching them with a barge pole when it comes to booking flights.
Most of what’s announced below is regurgitating previous announcements (cost cutting plan, sale of 5 Airbus). The one new thing here is refinancing of one Dreamliner, which will put around $30 million (close on 300 million NOK) onto the balance sheet. They’re also going to make “significant changes” to their route portfolio which will be announced on April 25th.
https://www.reuters.com/article/us-n...-idUSKCN1ON0MX
https://www.bloomberg.com/news/artic...-it-cuts-costs
Is that enough to placate the bond holders? Maybe, but not for long until they see more action. They’re still treading water, and I wouldn’t be touching them with a barge pole when it comes to booking flights.
Dec 26, 2018, 7:15 pm
#472
Join Date: Jul 2001
Programs: Marriott LT Tit; Hyatt Explorist; Hilton CC Gold; IHG CC Plt; Hertz (MR) 5 star
Posts: 5,536
Well, Norwegian has jumped into action and announced plans to keep the bond holders onside. Who makes these announcements on Christmas Eve if they’re not in deep doggy doo doo?
Most of what’s announced below is regurgitating previous announcements (cost cutting plan, sale of 5 Airbus). The one new thing here is refinancing of one Dreamliner, which will put around $30 million (close on 300 million NOK) onto the balance sheet. They’re also going to make “significant changes” to their route portfolio which will be announced on April 25th.
https://www.reuters.com/article/us-n...-idUSKCN1ON0MX
https://www.bloomberg.com/news/artic...-it-cuts-costs
Is that enough to placate the bond holders? Maybe, but not for long until they see more action. They’re still treading water, and I wouldn’t be touching them with a barge pole when it comes to booking flights.
Most of what’s announced below is regurgitating previous announcements (cost cutting plan, sale of 5 Airbus). The one new thing here is refinancing of one Dreamliner, which will put around $30 million (close on 300 million NOK) onto the balance sheet. They’re also going to make “significant changes” to their route portfolio which will be announced on April 25th.
https://www.reuters.com/article/us-n...-idUSKCN1ON0MX
https://www.bloomberg.com/news/artic...-it-cuts-costs
Is that enough to placate the bond holders? Maybe, but not for long until they see more action. They’re still treading water, and I wouldn’t be touching them with a barge pole when it comes to booking flights.