iflyjetz

I wouldn't count on knowing the future until 1 April.

The good news for Norwegian is that oil prices have been moving up. They're heavily hedged and were taking a financial bath on their hedges. The upward oil price move alone could account for most of the 3B NOK they're trying to raise as their hedges become profitable.

sjm0028

I do not know anything about airline costs, but my passenger impression is that DY system is good and could be low cost. They have recently added more seats with less leg room, ended free lounge access and only offer free beer and wine in premium. I do not mind the changes maybe because I have a Priority Pass CC membership. Seats are still good and better than US domestic first class seats. I like the ordering system especially when I am in coach. It seems DY could get by with fewer flight attendants. Although, they may be needed for safety. Flight last Sunday was mostly full in both sections. I think DY will have a good summer now that they will not have a shortage of transatlantic planes caused by engine replacements. Also, I think investor John Fredricksen who has oil trading offices could extract huge value from the bad hedges. I find the DY BOS to LGW experience very good.

Ldnn1

Would the hedges actually generate cash though? I've no idea how their hedges are structured but if it's largely simple futures type stuff then it'd be more loss aversion than profit making.

iahphx

Wow, what a diabolical way to screw your shareholders! It's a very clever (and I assume legal) way for a near bankrupt company with limited prospects to raise money. So for every share you own, they will sell you two shares valued at 1/3rd the current share price. So what does this make your existing shares worth. If you don't exercise the right, your shares will (presumably) be worth only $50 each with the dilution. Personally, I would just sell my shares. But, then again, I would NEVER have been a Norwegian shareholder!

iahphx

duplicate

Im a new user

If it all goes through, we should know the outcome on 11 March. If something doesn't go through, there may be something in the prospectus allowing for an extension of the subscription period, in which case we won't know the outcome until later.The closing price today was 91.00 crowns and the subscription price is 33 crowns. You get two new shares for each existing share. Define some parameters:

p1 = the current price (91.00 crowns)
p2 = theoretical price tomorrow
r = theoretical price of subscription rights
s = subscription price (33 crowns)

Thus:
p1 + 2*s = 3*p2
r = p2 - s

In other words, p2 = 52 crowns and r = 21 crowns. The subscription rights will be in value and the share price can drop by another 21 crowns before it's no longer profitable to use the rights to get new shares. I'd say that it's likely to go through.

If the current shareholders don't wish to give their money to DY, then they sell their subscription rights in the market and then the buyer uses those rights instead.

LapLap

I hadn’t seen this thread but had absorbed warning signs giving me misgivings about booking tickets for my parents, nephew, daughter and myself with them this August.
Saw some very appealing prices and at good times with Norwegian. I’ve flown with them before a few times, but the risk of having to buy replacement ALC - LON flights for the end of the school holidays in August (when they can easily go up to Ł250 or more each) wasn’t one I can afford.
Instead, I paid about 30% more than the Norwegian fares and settled for Vueling.

I do hope Norwegian can survive the summer and beyond. Just learned that they can not offer flights to any Far East destination that involves using the Siberian Corridor as Russia has given the permit for a Norway based carrier to SAS, that’s the case even if Norwegian were to offer flights from a different country (there were mentions of Norwegian investigating a BCN-TYO route, a route Air France owned Joop is looking into)

ft101

Do you mean Joon? Haven't they shut down already?

GFrye

LapLap

Wow, a lot really does happen in a year! Here’s the source I was referring to
https://www.cerodosbe.com/es/transpo...38316_102.html
And yes, it was Joon - A really REALLY bad name when you’re reading in Spanish (worse than NoVa), part of me must have subconsciously rebelled and written Joop/Ho-p instead

LAX/HKG

iahphx

Yeah, unless there's an absolute financial panic on Norwegian shares, or it's somehow determined to be illegal (beats me on EU securities law), I would think this offering is so diabolically set-up that it will work and they'll get their money. Logic would suggest that's enough money to get Norwegian through summer.

USA_flyer

I don't get how the management of Norwegian think it's going to make a profit. It going to have to raise fares and/or cut costs. What they're doing now is simply unsustainable in the long run.

vincewy

Without trying to hijack this thread, if you're talking about traveling to Lapland, I highly recommend taking sleeper train instead. It was comfortable with showers, it also saved me 1 night of hotel, especially in Rovaniemi when hotel rates are exorbitant, timing was perfect, last bus from Santa Claus Village (7:30pm) to the station will give you enough time to take break/dinner before the train arrives. There's no flights on Dec 23rd (late pm), 24th, and 25th, on the 26th DY was charging $300 one way RVN-HEL. There's no limitation on the train except Christmas eve pm.

Once you get to Helsinki (mid morning), some hotels are ready to check you in (not guaranteed). Although this is a bit OT, next trip I'd prefer going before Christmas, you can ask Santa Claus Village to mail postcards on Dec 25th if this is your main goal.

nanyang

If you have a strong preference to fly with Norwegian, then just book those flights. You can always book alternative flights closer to the time if needed.

Stating the obvious here, but AY have multiple daily flights HEL-OUL/RVN/IVL/KTT. Prices are not bad either. Just flew HEL-IVL-HEL with them a few weeks ago.