Hibernation and wait and see is not the answer for a company with many expences
What is Norwegian doing. They have only managed to fly 10% of the number they flew last year.
Ryanair on the other hand have flown 50% on 2/3 of the amount of flights they flew last year. That is about 72% of seats on every flight sold compared to 97% for same period last year.
This lead to that Ryanair had no problem getting in an extra 400 million cash from sale of new shares. This is about twice what Norwegian says they need to get through the next 6 months.
But who is going to invest in a company that already this year have burnt their shareholders. In fact a company that has made a habit of doing it nearly every year. Not without getting in some new brooms rather than the one that after just a few months in the job abandoned them alltogether.
Fact is in the airplane business there is always some crisis going. 9/11, oil price above USD 100 and whole fleets grounded. One can't just hibernate and wait them out but need to produce whatever one can no matter what the circumstances. Norwegian are after all earning nearly double the money per passenger mile than last year on what they do fly, so that is a strong indicator that more could be done.
Ryanair on the other hand have flown 50% on 2/3 of the amount of flights they flew last year. That is about 72% of seats on every flight sold compared to 97% for same period last year.
This lead to that Ryanair had no problem getting in an extra 400 million cash from sale of new shares. This is about twice what Norwegian says they need to get through the next 6 months.
But who is going to invest in a company that already this year have burnt their shareholders. In fact a company that has made a habit of doing it nearly every year. Not without getting in some new brooms rather than the one that after just a few months in the job abandoned them alltogether.
Fact is in the airplane business there is always some crisis going. 9/11, oil price above USD 100 and whole fleets grounded. One can't just hibernate and wait them out but need to produce whatever one can no matter what the circumstances. Norwegian are after all earning nearly double the money per passenger mile than last year on what they do fly, so that is a strong indicator that more could be done.
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