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Showing posts with the label saving jobs

Norwegian's financial mess was building over a long time due to less than optimal cost control

There is things surfacing that indicate the financial expertise within Norwegian was more in getting financing and avoid paying leases rather than in cost control. It sems like different stakeholders have through the years done their besst to milk the company dry thus stopping it from building up profits for a rainy day fund. There are talk about pilots being well paid, sometimes double tariff for working on days off, which indicates that operations and crew control was not too well managed either.  These are growth pains that comes to light in many companies, including Ryanair with their well known roster screw up a couple of years ago. But Ryanair could afford it and have been busy ever since getting out of the union deals the problems led them into, finally mostly resolved by using the CoVid19 crisis to get low low and long term 5 year deals with their staff. In Norwegian on the other hand they who should keep an eye on the bottom line have instead concentrated on getting more finan