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Norwegian Air stability through summer?

Norwegian Air stability through summer?

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Old Jan 25, 19, 12:16 am
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Norwegian Air stability through summer?

Hey all,
Back in November, I purchased a RT ticket on Norwegian for a family member to travel in April/May this year - it had the best schedule and price for this particular trip. Now comes the news that IAG is selling off their stake in Norwegian, which is obviously concerning. I know no one can see the future, but what is the likelihood that Norwegian remains stable through the summer months? Some reports indicate that they have enough cashflow to operate at least through the end of the year.

Is it best to just eat the cost of the ticket and rebook on a legacy carrier, at the expense of schedule/nonstop flights? Wait until closer to departure to see what happens? Some other option?
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Old Jan 25, 19, 12:28 am
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Norwegian Air is discussed in the Other European Airlines Forum on Flyertalk.
Please follow your thread in that forum
Thanks..
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Old Jan 25, 19, 1:16 am
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Norwegian’s financial stability (or lack of) is discussed ad infinitum here.

Norwegian to fly between UK, Ireland and U.S. NE Coast cities. from Summer 2017.

It's also come up recently on another thread -

Norwegian closing bases in RI and NY
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Old Jan 25, 19, 1:35 am
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Thanks for those links. I guess I'm more curious how much this recent news from IAG changes things, if at all?
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Old Jan 25, 19, 4:21 am
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IAG has/had circa 4% of Norwegian shares so it is not a significant holding. They only bought them to try and get themselves a little more leverage in possible take over talks.

It does appear that Norwegian do have sufficient funding and have started to make savings as well to improve their cash balances. Personally I would just keep a watching brief and make a decision closer to the time of the actual flights.
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Old Jan 25, 19, 5:21 am
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A 4% shareholding wouldn't have gotten IAG any inside information. So no reason to fear the imminent demise of Norwegian based on IAG selling out.

More likely they are feeling strong and cash generation would be good heading into the peak summer leisure travel season. So no need to engage with IAG on selling the airline on the cheap...
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Old Jan 25, 19, 7:05 am
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Britain’s “Daily Telegraph” newspaper speculates today that Lufthansa might still be interested- “Carsten Spohr, chief executive of the German airline, said last June there was “a new wave of consolidation approaching” and Lufthansa was “in contact” with Norwegian.” I have no idea whether there is anything in this.
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Old Jan 25, 19, 7:21 am
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I'm having the same questions, I just booked 4 tickets from PVD to Cork for July/August through Chase Ultimate Rewards on Norwegian. I have until this afternoon to cancel without penalties. My fear is that we won't know the real situation until April, when it will be too late to rebook award tickets with Aer Lingus. That could mean no trip at all. Unfortunately, the PVD to Cork route is perfect for us because we are so near our start/end points.
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Old Jan 25, 19, 8:56 am
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Originally Posted by Philodemus View Post
Britain’s “Daily Telegraph” newspaper speculates today that Lufthansa might still be interested- “Carsten Spohr, chief executive of the German airline, said last June there was “a new wave of consolidation approaching” and Lufthansa was “in contact” with Norwegian.” I have no idea whether there is anything in this.
Based on my recent experience with LH, that would be a step up from Lufthansa's current operations. Guess they already learned everything they could from Ryanair and are looking for other airlines to emulate.
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Old Jan 25, 19, 9:46 am
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I've got the same fears, I'm booked on a ticket from LHR-MIA (or maybe it's a different London airport, I'll figure it out before the flight!) in mid-May. It would be inconvenient to have to rebook a few weeks out, though at least London is a good airport to do it from, I suppose.
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Old Jan 25, 19, 11:09 am
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I feel that with situations like these, if you have to ask, you already know the answer.
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Old Jan 25, 19, 11:40 am
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Originally Posted by Philodemus View Post
Britain’s “Daily Telegraph” newspaper speculates today that Lufthansa might still be interested- “Carsten Spohr, chief executive of the German airline, said last June there was “a new wave of consolidation approaching” and Lufthansa was “in contact” with Norwegian.” I have no idea whether there is anything in this.
LH has a close cooperation with DY's main competitor Scandinavian Airlines, so I wonder what SK and regulatory authorities would say if LH tried to buy DY.
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Old Jan 25, 19, 1:08 pm
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Originally Posted by bman1002 View Post
I feel that with situations like these, if you have to ask, you already know the answer.
Yep. Their loads haven’t been strong, they have bigly fuel hedging losses, and they’ve been dangerously close to breaching bond covenants.
January traffic will be released on February 5 and Q4 earnings call is February 14.

Id wait until the earnings call.
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Old Jan 25, 19, 2:19 pm
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Originally Posted by Rabidstoat View Post
I've got the same fears, I'm booked on a ticket from LHR-MIA (or maybe it's a different London airport, I'll figure it out before the flight!) in mid-May. It would be inconvenient to have to rebook a few weeks out, though at least London is a good airport to do it from, I suppose.
You'll find that it's from Gatwick Airport.
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Old Jan 25, 19, 4:47 pm
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All a matter of risk tolerance. A recent cash infusion assures operations through March. After that is reading tea leaves unless one has inside information. And even then.

This is a way of saying that there is no person on FT who can tell you what will happen with anything April or later. Brexit, US interest rates, China trade, weather, and volcanic ash, may all combine to keep it afloat or sink it.
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