Airlines in a Crisis

An actual Chapter 11 because it was done in the US so they could continue flying with their subsidiaries and operate their bonus program. The cash situation in SAS must have been worse than previously announced because they have put all cabin crew on leave and are already scrambling to find a loan of 700 million dollars to help them through the reconstruction process. This must mean that most of the earlier announced 8 billion krona cash available was in reality prepayments from customers that is now running out fast as repayments for cancelled flights, and compensation because the non-flying wheren't notified 14 days in advance. How company management can prefer this process to a slower but still fully flying cost saving exercise is baffling. Or have they looked to much to what happened with Norwegian. Then they have forgotten that the Norwegian process happened in the middle of a pandemic where sources of refinancing where available from many sides and leasing companies where des...

Norse Atlantic Airways is the new transatalantic then true intercontinental airline where the founder of Norwegian Kjos and his partner Kise are involved.  It might be targeting Low Fares and according to its founder they have learnt the lesson that that have to be combined with Low Cost. Maybe and maybe not. They are going for ex Norwegian 787's wih the same seat configuration. That might save on leasing cost, what they are planning of fundraising do not equal to outright plane purchases, but it is 2 cabin classes again and that is not true Low Cost.  Add in the freight, which have proven crucial and resilient but is still a distraction but you migth as well since 30min turnarounds are out the window, and a new Low Cost concept needs to be invented. With usual pain for first movers, maybe a bit less for what will now be a second mover. Norway might be where this airline will be founded and somewhat hq'd but if they have learnt their lessons from the adventures with Norwegian ...

 And with taking on I don't mean competing against them but rather swallowing the juicy parts of it. What do Norwegian have that could be attractive to Ryanair:  It has a loyal following in Norway and parts of Scandinavia . A following that want Low Fares but loats Ryanair. It has a well established net of routes within Scandinavia and domestically within Norway that Ryanair would have a problem copying without diluting its own union stance and cost base. It is positioned at the more premium part of Low Fares with a less agitating policy against customers. This could be expanded upon incorporating some more Low Cost basics for profitability. And without messing up the Ryanair image anc cost base like its own Always Getting Better efforts have done to the bottom line lately. It has a Transatlantic/Transcontinental fleet and a worked up net of routes and we all know how O'Leary have long wanted to somehow do Transatlantic Low Cost. A part that could be split out from Norwegian S...

 There are always some Norwegians willing to buy small amounts of shares just because its an airline and its name is Norwegian. But not that manry and they are not that flush with cash that it will make a difference.  The current majority shareholders, the lease owners, are unvoluntering shareowners and its doubtfull if thwy will go for the same stunt again. And they have expressed that they don't want to own airlines. If they let the floodgates open there could be many other airline in financial need that would pay for their leased aircraft in shares instead of readies. A trade sale or trade investor is always a possibility. If the share price should fall to let#'s say 10 ore or 1 penny the whole share capital could be bought for 300 million nkr or 30 million euro. An investment instead of lets say 50 million nd nulling of the old shares would get you a solid foothold in the Scandinavian market including Scandinavia to the sun/med. Other airlines have done similar investments...

What is the plan for the lenders new shareholdings in Norwegian. Why did they not just take the planes back and finished with it. A loss is a loss and better be over and done with it and move on. Are they just leaving the Dreamliners there hoping the Norwegian government through unsecured loans to Norwegian will pay for maintenance and parking for them until the market returns. Then take them back only at such a time when existing or new airlines make signals to move on the Transcontintal markets Norwegian left behind. Unless Norwegian's management in the near future quickly turns around and show they have a plan for all those aircrafts one would assume the planes real owners will take them back. In the meantime they can always make some extra cash by selling the billions of new Norwegian shares to upset norwegians. On the other hand would they not be better off getting in a new management with a vision for the company. A vision for how planes could be utilized whatever it take...