Airlines in a Crisis

Not only do the norwegian state demand 400 million in penalties for lack of CO2 quotas handed over for 2020. They are also demanding the handing over of an estimated 300 million worth of CO2 quotas. That is a nkr 700 million demand against only 15 million set off in the accounts of  the airline Norwegian to cover it. With such a large disputed demand against the airline, disputed because the airline itself thought this demand disappeared in the financial reconstruction of the airline 2 years ago, it is strange based on a very thin result they would commit to so much expansion. And even stranger that leasing companies would agree to such an increased risk based on the history of the airline. Not only is it a substantial financial risk but it will also tie up mangement in court and indecision at a time when they should be operationally rebuilding the airline. That is not the time to plan for a rapid 50% expansion which is bound not to only take massive resources. That many new routes...

The CEO of Norwegian announced that they will take on an extra 30 planes closing in on 100 planes in the coming year. In addition to the planes they commited to after the restitution deal with Boeing, which one could have hoped would be used for aircraft replacements rather than even more expansion. The company is taking high risks based on only 1 summer season and 1 autumn season of positive results. 2 seasons where their Scandinavian competitors where in trouble and therefore unable to compete much. SAS with their strikes and Chaper 11 and Flyr running out of cash to such an extent that their winter program runs only 4 out of the 12 planes they are paying leases for.  That is a weak base for saying the market is so good that one should increase ones fleet with 50% in the short term. Growth costs and they'll be trying to find extra markets at a time when both SAS and Flyr could be doing the same.That do not bode well for a continued positive result for Norwegian. Question is can t...

An unprecedented amount of planes having been stored for 3 or more months some wiht minimal serviceing, have led to issues coming to the fore as planes are being taken out of storae and put bsck into service. It could be a risky business at the beginning as new and earlier unforseeen problems are cropping up. The most is the air check valve which due to corrosion might stick in the open position resulting in compressor stalls, double engine failure and inability to restert either engine. Airlines might have been better circulating all their planes into service regularly, sample a different plane each day, than parking most and only actively utilizing the same select few, like Norwegian. Or at least flying the unused for passenger service planes regularly on small test, like Ryanair. Pennies (relatively) saved can quickly become dollars needed, or worse. There is a reason planes are stored long term in desert like conditions and not just on any airport that is cheap and have space....

Specially Low Fares airlins without distinctly different seat configurations for where passengers can choose to pay more for a more separate seatig arrangements, should at this time consider to give ereryone an option to increase the amount of potential customers. Some have suggested to call the Couldn't Care Less class (CCLc) the CoVid19 class but that could give the wrong associations and suggest the airline actually accept infected people on board. Something that should of course be avoided with all possible measures. Sanitized class (Sc) would have middle seat free and cleaning would be done between each flight. Cleaning would include wiping down all touch surfaces like armrests, tray tables, seat backs and similar, including anything you are likely to touch when boarding and disembarking. In additional each passenger should be supplied with packed sanitizing napkins if they want to do additional wipe downs themselves. They would also board from the front. and their toilets ...