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 havi

An airline with less than 100 planes in their fleet are at constant risk of being taken over. A tempting proposal for shareholders knowing the risks associated with airline stocks and therefor suceptible to larger airlines wanting to quell sudden upstarts. More than 200 planes and you are becoming a real threat and can no longer hide your size. Unions beome focused and all of a sudden you are coming to the top of size statistics and a sharpened view from the established. Around 200 you are to large for a swept under the carpet buy out and can continue to play the I'm still catching up game without another airline going after every route you try. You are also still a manageable size where a small top managmenet team can have full control on all aspects and a CEO can get into the details and reach out to everyone where necessary. Ryanair have certainly not succeded profit wise with their expnsion. Their profit at 400 was hardly 20% more than when they had 200 planes. And in the m