Flyr aftermath

The cleanup after Flyr has brought to the front a number of ways the airline wasted its investors money.

A number of staff had fancifull titles whcih point to an overflow of staff that wasn't completely necessary for a small startup company. Lots of VP's under the Chief level. Maybe some of the urge to comit to more planes was due to an overhiring of well titled staff that needed someone to manage which could only be justified by becoming a larger airline. 

Where the ex-Norwegian managmenet building the backoffice of the new airline Flyr based on what the much larger airline Norwegian had. An airline that also went under unable to manage its debt or comitments, before being resurrected. A plane needs sa certain amount of pilots and cabinstaff to fly a certain schedule. It is the backoffice saving are to be had. Just as many staff in the back as flying staff seems excessive. Specially when one knows large parts of its ground handling and maintenance were outsourced

A lot of effort was spent on creating the F in Flyr's logo. And possibly part of it outsourced to a third party consultancy. That sort of excessive spend should have waited to a time of profitability. Who cares how the F looks when you are looking for a ticket. I hadn't even noticed it before I saw a comment on its part of 2 circles design after Flyr's end.

It seems that not only credit card companies have had their hand in the company pockets with not transfering funds for seats sold. Banks have held of a a sizable chunk of Flyr's cash as a guarantee. And deposits for the lease of planes also seems to have taken a sizeable chunk of the airlne's take form investors.

The official norwegian hr system also lead to the build up of a sizable debt to cover sample hollliday pay for staff. This is usually only paid out for the summer following the year of earning. Often in the size of 10% of total payroll. 

At the end they had only 50 million nkr in cash. And 40 of that was a minimum holding guarantee for the bank to ensure deliveries of sample fuel. Then they sample owed 30 million in wages and holliday pay and as we already knew 150 million in CO2 quota liabilities for 2022.

So they really had run out of money. Knowing they had burned through at least the 250 million invested about 4 months ago it is questionable even if they had succeded with getting another 350 million it would have lasted them over the summer. And then another winter would have set in. Flyr was in need of serious changes and their last management weren't able to see them or make them or both.