Norwegian to fly between UK, Ireland and U.S. NE Coast cities. from Summer 2017.
Oct 4, 2018, 3:41 am
#421
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As far as I understood it is all of the yet to be delivered Airbus 320NEO that they are trying to off load. As they will not need the capacity growth coming from this.
Norwegian very proudly made the biggest airliner orders in European history, ordering bunch of 737MAX and a bunch of A320NEO. Reason for splitting between two manufacturers was that they could get the planes quicker that way. Some people doubted what they would do with all those aircraft, well now we know.
Norwegian very proudly made the biggest airliner orders in European history, ordering bunch of 737MAX and a bunch of A320NEO. Reason for splitting between two manufacturers was that they could get the planes quicker that way. Some people doubted what they would do with all those aircraft, well now we know.
Note that on page 19, the subbullet point under the sale of 140 aircraft has 6 737-800s sold in August to count against the 140 aircraft.
The expansion in Argentina is rumored to be going poorly, as the government isn't happy with Norwegian's sales model (additional charges for luggage, seats).
Oct 4, 2018, 4:28 am
#422
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Well, looks like that plan has changed. Here's the slide deck: https://www.norwegian.com/globalasse...ember-2018.pdf
Note that on page 19, the subbullet point under the sale of 140 aircraft has 6 737-800s sold in August to count against the 140 aircraft.
The expansion in Argentina is rumored to be going poorly, as the government isn't happy with Norwegian's sales model (additional charges for luggage, seats).
Note that on page 19, the subbullet point under the sale of 140 aircraft has 6 737-800s sold in August to count against the 140 aircraft.
The expansion in Argentina is rumored to be going poorly, as the government isn't happy with Norwegian's sales model (additional charges for luggage, seats).
Supposedly they started the bookings in Argentina already. So one would hope they have the regulations on board.
Oct 4, 2018, 6:04 am
#423
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It's hard to imagine a worse distraction than Argentina for Norwegian right now. There's no way Argentina could possibly be profitable for Norwegian in the foreseeable future. If there was ever an airline that deserved to die, it's Norwegian. Their management team is determined to do everything wrong.
Oct 4, 2018, 9:26 am
#424
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... yet they survive... 
The A320 neo production slots are certainly worth something, though I doubt they will be able to sell them for more than the downpayment they had to make to Airbus when they signed the papers. Which also must be a sizeable chunk of cash which they can't sell and leaseback
NAS bet on the fact that their new neo and max fleet will save the cost increase that fuel may have. I think fuel prices increased far more than that and the cost savings were used a few times in other places like the unit cost of production going down etc.
The A320 neo production slots are certainly worth something, though I doubt they will be able to sell them for more than the downpayment they had to make to Airbus when they signed the papers. Which also must be a sizeable chunk of cash which they can't sell and leaseback
NAS bet on the fact that their new neo and max fleet will save the cost increase that fuel may have. I think fuel prices increased far more than that and the cost savings were used a few times in other places like the unit cost of production going down etc.
Oct 4, 2018, 10:14 am
#425
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... yet they survive...
The A320 neo production slots are certainly worth something, though I doubt they will be able to sell them for more than the downpayment they had to make to Airbus when they signed the papers. Which also must be a sizeable chunk of cash which they can't sell and leaseback
NAS bet on the fact that their new neo and max fleet will save the cost increase that fuel may have. I think fuel prices increased far more than that and the cost savings were used a few times in other places like the unit cost of production going down etc.
The A320 neo production slots are certainly worth something, though I doubt they will be able to sell them for more than the downpayment they had to make to Airbus when they signed the papers. Which also must be a sizeable chunk of cash which they can't sell and leaseback
NAS bet on the fact that their new neo and max fleet will save the cost increase that fuel may have. I think fuel prices increased far more than that and the cost savings were used a few times in other places like the unit cost of production going down etc.
Q3 has historically been Norwegian's profitable quarter. Look at Norwegian's monthly traffic reports for Jul, Aug, and Sep. Their monthly RASM was .47, .40, and .33. If you look at their September Investor Presentation (see the link below that I posted), you'll see that Norwegian's CASM for Q2 was .41. How much did that increase with higher fuel prices? At best, Q3 was marginally profitable for Norwegian before one time adjustments.
Now do everyone a favor and take a look at Norwegian's Q4 and Q1 historic
As far as value to Norwegian's A320 NEO orders, I don't know where you're coming up with that. Other airlines are circling overhead, waiting to pick clean the dead carcass. They're in no rush to give Norwegian a financial lifeline.
Absent someone deciding that they want to pour kerosene on their money and light it on fire in the form of an equity investment in Norwegian, this company is almost certainly dead within six months.
Oct 26, 2018, 8:08 am
#426
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While traveling on a DY 787 would be preferable over UA's old and tired planes, I can't trust that DY will still be around, so I went with UA.
Oct 26, 2018, 8:36 pm
#427
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I recently booked flight from IAD to Europe, traveling in June next year. Travel time for Norwegian was on par with regular airlines like KLM, UA, and BA, and price wise Norwegian's pricing was on par with Wow and Icelandair. The choice came down to DY and UA, mostly because I don't think Wow will be around and the scheduling for DY and UA was better than the other alternatives.
While traveling on a DY 787 would be preferable over UA's old and tired planes, I can't trust that DY will still be around, so I went with UA.
While traveling on a DY 787 would be preferable over UA's old and tired planes, I can't trust that DY will still be around, so I went with UA.
Oct 26, 2018, 8:44 pm
#428
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Oct 26, 2018, 8:49 pm
#429
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With recessions, business flying drops off or business people look for cheaper options.
Many airlines are failing in Europe right now. Just cos UA are big doesn't mean they won't fail again.
Oct 27, 2018, 7:03 pm
#430
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Secondly, United’s costs are well under control. Their ex-fuel unit costs have fallen this year, and their revenues are soaring. Their Q3 profit margin fell less than 1% despite fuel costs increasing circa 40%. They’ve overtaken American in profitability, as well as JetBlue. United (along with Delta, IAG/BA and Lufhtansa) is in a very strong position to flourish in the high fuel cost environment and take market share from others who stumble. Indeed that’s already happening vs AA.
Norwegian’s Q3,results had some encouraging signs. But they’re now going into the winter quarters which have been terrible in the past. They have 5 billion NOK in liquidity but 3.2 billion of that is all down to selling assets and private equity placements to prevent them breaching bond covenants and going under in March. Will NOK 5bn be enough to survive the next six months? If fuel prices drop then yes quite possibly. If they stay where they are or go up it’s goong to be very very tough.
Oct 29, 2018, 9:51 am
#435
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Obviously, there will be another recession. The problem is that it's a useless exercise to try to predict "when." It's almost like trying to predict oil prices. I used to do that for a living, until we realized it was entirely impossible. There's this concept called "financialization" where oil doesn't trade on oil supply and demand, but trades primarily on the demand for oil futures as an investment vehicle. So it's about as hard as predicting a financial recession. Better off spending your time on other work.
As far as airlines go, it's obviously safer to book advance tickets on airlines that are financially stable (and that includes United) and not those who lose lots of money (and that includes Norwegian). But everything has a price. So if you're paying by credit card for a Norwegian ticket, you should be able to get your money back if they go under before your flight. Of course, if you really, really have to get somewhere on a certain date, it's probably best not to book on risky, financially unstable carriers.