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Showing posts with the label creditors

Management and chums landgrab for a quick Norwegian profit

Accepting the plan for the future Norwegian maangment announced today 14/1-2021 is something creditors and leaseowners should think more than twice about. The key is in the details and the plan for 50 planes now but a rapid expansion to 70 already in 2022 is akin to a landgrab by management and a an asembled consortium of larger new shareholders. Meaning they under-size now before the vaccines has nullified the pandemic and then expand rapidly with significantly better lease deals as the markets recover. Another key sign is that only a very small amount of new shares are available to existing shareholders. If it awas all above board wouldn't they be given a fare share. The difference now is that its not up for another shareowner vote so in reality its a free for all for managment and whoever they are mixed in with. Next year, if profitable, and I can't see why covering maybe a 80% market with a 50% fleetsize, its time for big bonuses to top management and a rapid rice for the s

Do airlines survive on unearned money

Not issuing refunds means airlines have been living on unearned revenue and were for all sense and purpose trading while technically bust even before this crisis. The longer they are allowed to go without paying back what they haven't earned, the longer they are in reality now trading on their passengers money as well as their other creditors. All this money should technically have been in a similar to escrow account until either the airline earned it or they refunded it. These airlines have been paying out dividends and share buybacks with money that wasn't theirs. I know large amount of cash sitting in bank accounts are very tempting but when one do a lot of advanced sales is it part of being an honest business. This goes also for they who don't normally issue refunds. The unexpected will always arrive. Hoping it won't arrive during your time at the helm is not an example of good leadership. Prudent is not a negative word in finances.