Airlines in a Crisis

Latest they accounted as income nearly 500 million nkr worth of unused and expired bonus points they had booked as expenses when customers earned them before the pandemic and before old Norwegian went bust. This comes in addition to the couple of billion nkr of future discounts Boeing gave them as repatriation for earlier problems old Norwegian had with the Boeing planes. New Norwegian also booked this in as income for 2022. In quarter 4 with twice as much income as the year before they managed to only loose about the same as the year before. Is that good, bad, nah or neither. It does point to that they still have problem with growing in a profitable way. Then we come to the the 7,8 billion nkr they say they have in cash. How much of this is unearned payments from future customers. The current CEO Karlsen used to count that as cash when he was just chief of finance in old Norwegian. That went bad in 2020 when they couldn't fly those customers, they all wanted refunds and no new mon...

Gei Karlsen, the CEO of Norwegian, learnt his airline craft during a wild expansion and is now looking to recreate that. Just before he announce a 17 mill euro profit for the summer season 2021, he announce 17 more planes for the fleet. At least he didn't pay extra to get the ExMax, for now but did say that that was an option for the future. He is also going to park a large part of the fleet during the winter months and is negotiating hard with the unions for some solution on what to do with the flying crews during that period. Will it be a long vacation or will it be halve the hours for everybody. The need to keep pilots current may play in here. But he didn't stop there. They day after the results he is hinting to that he want to expand further and think Norwegian can handle a fleet of 80 aircraft with the administrative staff they already have on board today. The parking will be helped financiall by some power by the hour deals for the winter season but maintenance will stil...