Airlines in a Crisis

The rescue plan leeks seem to be pretty consistant on that the future of Norwegian will contain shorthaul within  and to/from the Scandinavian market. Question is what about 787 LH. Norwegian seem to historically have used a small profit margin created from its original and core business of the domestic and Scandinavian plus sun hollidays for same market, to subsidise an expansion into transcontinental including transatlantic flights. Without the latter beeing documented as anything else than a loss making business. Resulting in the whole company using a lot of red ink for its accounts. There is a possibility for LH low fares business but one have to have the discipline for low cost operations that must go with it. The 787 proved a problematic choice for the company and maybe now one of the never narrowbody planes with la larger range would be a better option. Partially because the Scandinavian to sample US market is very small even from the capital cities, and most routes gain by ...

Norwegian have today presented a new plan for how they dream the company can be rescued.  Lets talk about the positives first. They are planning to do a reverse share split by a factor of 100 from over 3 billion to round 30 million. There have been comments that sees shares only worth some norwegian øre (100'th of a Norwegian Krone (nkr)) as signs of a company in distress and leading to a share price easily manipulated = penny stocks. For any hope for the future they need to be able to have shares with an exchange worth of whole nkr's. Theis leads us to the question wether there are enough small investors in Norway, and maybe other Scandinavian countries with enough cash to waste to swallow up a new issue of 4 billion nkr of even more new shares whose value could be lost nearly before they are isued. After all they say straight out that they hope the shareholders will continue to support them for even further future recapitalizations. If there are that many willing to throw eve...