Norwegian digging deeper into its hole instead of taking opportunities offered
The language in their lawsuit against Boeing in connection with their termination of the contracts for ExMax and Dreampliner deliveries is not sparing the expetives.
A company in such a precarius position should be more careful when it comes to handling its in reality only supplier that it for a good while into the future still will be dependant on for the maintenance and value of its entire existing fleet.
Could it be that top management of Norwegian do not really know what it entails to change from Boeing to Airbus, or the risk of going Chinese or Russian. After all they are lacking indepth airline experience between them, coming more from a finance and retail background. The pilot retraining and dual engineering maintenance and double parts storge costs alone would stop the company from being a Low Cost. And a Low Fares airline without corresponding Low Costs will be a loss making business no matter how many routes you cut or how much you shrink, or how many extra candybars you sell onboard or extra experiences to go with it.
5 free Dreamliners is not a bad offer from Boeing as compensation for a plane which faults mainly are with the 3'rd party supplied engines. They may only be able to fly them 80% of what they originally thought, for now. But that isn't really aproblem anyway for the next few years. And at some time in the near future their engine supplier will have produced enough spares for quick swaps to compensate for the downtime.
If not for own use Dreamliners is a hot commodity at the moment. Look what is being flown and what is being parked in the rebound from CoVid19. Airlines are getting writh of their 747's, A380's and A330's for the more efficient and economic 787's and A350's.
Let set the 5's value at 200 million USD each. That is 10 000 million Norwegian krona, equal to the entire stock market value of the 3 billion Norwegian shares at the moment. And more than 3 times the value of the CoVid19 loans the government guaranteed for the company.
One would think Norwegian could turn those 5 787's into a regular inflow of cash from some leasing company. Think of all those lowly stagepayments coming in as they are built. Or alternatively nulling some of the lease payments for the rest of their fleet they themselves are due to pay leasing comanies over the coming years.
A company in such a precarius position should be more careful when it comes to handling its in reality only supplier that it for a good while into the future still will be dependant on for the maintenance and value of its entire existing fleet.
Could it be that top management of Norwegian do not really know what it entails to change from Boeing to Airbus, or the risk of going Chinese or Russian. After all they are lacking indepth airline experience between them, coming more from a finance and retail background. The pilot retraining and dual engineering maintenance and double parts storge costs alone would stop the company from being a Low Cost. And a Low Fares airline without corresponding Low Costs will be a loss making business no matter how many routes you cut or how much you shrink, or how many extra candybars you sell onboard or extra experiences to go with it.
5 free Dreamliners is not a bad offer from Boeing as compensation for a plane which faults mainly are with the 3'rd party supplied engines. They may only be able to fly them 80% of what they originally thought, for now. But that isn't really aproblem anyway for the next few years. And at some time in the near future their engine supplier will have produced enough spares for quick swaps to compensate for the downtime.
If not for own use Dreamliners is a hot commodity at the moment. Look what is being flown and what is being parked in the rebound from CoVid19. Airlines are getting writh of their 747's, A380's and A330's for the more efficient and economic 787's and A350's.
Let set the 5's value at 200 million USD each. That is 10 000 million Norwegian krona, equal to the entire stock market value of the 3 billion Norwegian shares at the moment. And more than 3 times the value of the CoVid19 loans the government guaranteed for the company.
One would think Norwegian could turn those 5 787's into a regular inflow of cash from some leasing company. Think of all those lowly stagepayments coming in as they are built. Or alternatively nulling some of the lease payments for the rest of their fleet they themselves are due to pay leasing comanies over the coming years.
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