Norwegian faces collapse

[antser]

Norwegian Air to cut 4,000 flights, lay off half its employees
Coronavirus: travel restrictions and falling demand hurting airline industry
Norwegian Air will temporarily lay off half its employees.

Norwegian Air will scrap another 4,000 flights and temporarily lay off up to half of its employees due to the coronavirus outbreak, the company said on Thursday.

Travel restrictions and falling demand due to the pandemic have hammered airlines around the world, with the situation for the sector worsening following US president Donald Trump’s ordering of sweeping restrictions on travel from Europe to the US for the next 30 days.

Air France KLM, Lufthansa and Aer Lingus-owner IAG all plunged between 11 and 15 per cent in wake of the travel restrictions, while Dublin-listed Ryanair dropped 7.2 per cent.

But the US restrictions are a particularly severe blow for Norwegian Air, a pioneer in transatlantic budget travel and the largest foreign airline serving the New York region and several other US cities.

About 40 per cent of its long-haul fleet will be grounded until the end of May, the company said. Flights to the US from Paris, Barcelona, Amsterdam, Madrid, Athens and Oslo will be cancelled, although routes from London’s Gatwick Airport will continue as normal as Britain is not affected by the US restrictions.

Up to a quarter of short-haul flights have also been axed, Norwegian added. The company said earlier this week it would cut about 3,000 flights between mid-March and mid-June.

Norwegian Air, which had already suffered big losses and haemorrhaged cash in recent years, blamed the “extraordinary market situation due to the coronavirus” for the layoffs.

“We must look at all possible measures to reduce costs. This unfortunately also includes temporary layoffs of up to 50 per cent of our employees, and the number may increase,” said the airline, which employs about 11,000 people according to its website.

“We urge international governments to act now to ensure that the aviation industry can protect jobs and continue to be a vital part of the global economic recovery,” chief executive Jacob Schram said.


Norway’s prime minister Erna Solberg said earlier this week that her government would offer financial assistance to hard-hit industries, including airlines, but did not provide details.

– Reuters / Bloomberg

 

[East End Ave]

Intanto rimbalzo odierno per DY, al momento a 9NOK, +22%. E' chiaro che piu' il valore sia minimale e piu' ogni variazione vada in double digit, ma insomma, un segnale incoraggiante quantomeno, e non solo per DY. In recupero anche LH, AF-KL e IAG.

 

[Farfallina]

Intanto rimbalzo odierno per DY, al momento a 9NOK, +22%. E' chiaro che piu' il valore sia minimale e piu' ogni variazione vada in double digit, ma insomma, un segnale incoraggiante quantomeno, e non solo per DY. In recupero anche LH, AF-KL e IAG.

Probabile rimbalzo tecnico per coprire le vendite allo scoperto nei giorni scorsi. Comunque valutare le oscillazioni azionarie in questi giorni legandole alla solidità o performance delle aziende è senza senso, è tutto in mano agli speculatori che si stanno riempendo alla grande le tasche sfruttando l'immobilità dei controllori. Nemmeno vietare le vendite allo scoperto è stato un invito a nozze per i peggio sciacalli.

 

[East End Ave]

Probabile rimbalzo tecnico per coprire le vendite allo scoperto nei giorni scorsi. Comunque valutare le oscillazioni azionarie in questi giorni legandole alla solidità o performance delle aziende è senza senso, è tutto in mano agli speculatori che si stanno riempendo alla grande le tasche sfruttando l'immobilità dei controllori. Nemmeno vietare le vendite allo scoperto è stato un invito a nozze per i peggio sciacalli.

certo, e' tutto molto volatile; ma il collasso e' andato avanti per giorni prima di invertire il trend, guarda caso sempre anticipando di qualche ora/giorno l'estensione del disastro. Speriamo si sappia di qualcosa di positivo nel deep inside...

 

[antser]

certo, e' tutto molto volatile; ma il collasso e' andato avanti per giorni prima di invertire il trend, guarda caso sempre anticipando di qualche ora/giorno l'estensione del disastro. Speriamo si sappia di qualcosa di positivo nel deep inside...

Raga', la borsa fa così. Non c'è nessun deep inside altrimenti il trend sarebbe definito e stabile, non si passerebbe da un - 15% a un +15%. Volatilità = non si sa che succederà.
Il vero nodo, oramai, è quanto (non quando) l'infezione farà male in Europa e in USA. E da questo dipenderanno le sorti del mondo, oserei dire, visto che il debito globale, senza coronavirus, è già abbastanza alto da non essere sostenibile e stampare altri zilioni di dollari/euro/yuan/yen significa solo che qualcuno in una banca dice: okkei, da oggi abbiamo x zilioni in più. Carta straccia, anzi nemmeno carta, un numeretto su un computer.
Una Norwegian su scala globale

 

[belumosi]

Oggi rimbalzino del 5% per le azioni.
In compenso Schram ha rivolto al governo norvegese un appello che sa di ultimatum, chiedendo soldi freschi immediatamente.

Norwegian seeks urgent government support

By Cirium13 March 2020

Norwegian is asking the government in Oslo for an immediate bailout as it struggles to cope with the coronavirus outbreak that is decimating travel demand.
“We’re in a very demanding situation at the moment,” states chief executive Jacob Schram. “We need exact measures to strengthen our liquidity in the short term immediately.”
While the carrier welcomes a move to suspend some taxes levied on airlines such as passenger fees, “it is crucial for us that the government will work on solutions for a phase two. We are asking for these solutions to come quickly,” Schram says.
Norwegian is willing to take “all measures necessary” to reduce its losses, he continues, “no matter how painful they are.”
The Norwegian government has said that it could be open to providing the industry with financial help in other ways, press reports say, although no details have been announced.
Market turmoil means that Norwegian is unable to turn to investors to raise equity or issue debt in order to secure new liquidity, “which means that it is not possible to finance businesses in a normal fashion”.
The carrier highlights that it has undergone significant restructuring over the past year and has sold 24 aircraft. It also has a low share of fuel hedging, locking only 25% of its expected fuel consumption – which could see it benefit from a recent fuel price reduction.
In a note to clients issued yesterday, HSBC said that it expected Norwegian to face “cash flow challenges in the near term,” given the dramatic deterioration in market conditions and the US ban on travellers from Schengen-area European countries. “Suppliers will likely take a very cautious view towards Norwegian, exacerbating cash challenges. The likelihood of airlines being able to raise significant amounts of new equity in the present environment does not look high.”

https://www.flightglobal.com/strategy/norwegian-seeks-urgent-government-support/137253.article

 

[Dancrane]

MA VI RIESCE IMPOSSIBILE PIANTARLA CON LE QUESTIONI NON AERONAUTICHE? ANCHE ALL’ASILO CI RIESCONO!

 

[Dancrane]

Avviso ai naviganti: qualunque commento OT verrà sanzionato, qualunque sia il thread nel quale viene postato. Mi auguro di non doverlo ripetere.

 

[antser]

Norwegian Air Says It Will Run Out of Cash in Weeks
Victoria Klesty and Terje Solsvik, Reuters - Mar 13, 2020 1:15 pm

The situation is moving from severe to critical for Norwegian. Unless it gets significant government help, it won’t survive the crisis.
— Patrick Whyte

Norway’s government took steps to safeguard its aviation industry and its budget carrier Norwegian Air Shuttle warned of its possible collapse without further aid, as the coronavirus did more damage to the global travel sector on Friday.

In the first major move by a national government to provide help to the industry as the pandemic curbs passenger travel, the country’s finance minister suspended fees and taxes on airlines and said it was in talks about further measures.

The news came as Norwegian Air, Europe’s third-largest budget carrier and a major customer of Boeing Co said it was a matter of weeks before it ran out of cash.

“What is important is to provide liquidity within weeks, not months,” CEO Jacob Schram told a news conference.

The airline was already suffering big losses and haemorrhaging cash in recent years and on Thursday announced it would temporarily lay off up to half its 11,000 employees as thousands of flights were scrapped.

Norwegian, a pioneer of low-cost transatlantic routes, has repeatedly called on governments to help the airline industry.

“I am optimistic the government will help us with the liquidity crisis,” Schram said.

The measures come after the U.S. government restricted travel from Europe, dealing a severe blow to Norwegian Air, the largest foreign airline serving the New York region and several other cities.

As a first step on Friday, Norway suspended all airport fees for the first six months of 2020 and the tax Norway charges for each passenger will be lifted for a period of 10 months, Finance Minister Jan Tore Sanner told a news conference.

The government also said it would pay a greater part of the bill for all companies seeking to make temporary layoffs, but stopped short of issuing any blanket guarantees.

Sanner said it was too early to say what other measures could be introduced and Prime Minister Erna Solberg cautioned that some companies may still collapse, highlighting the depth of the crisis for companies and limits to governments’ appetite for major state intervention.

“While it’s crucial to help viable companies at a difficult time, some might have to go bankrupt,” she said.

“Not all companies will make it,” she added.

The Nordic country invoked emergency powers on Thursday to close a wide range of public and private institutions to try to limit the spread of the virus, and asked people to refrain from leisure travel.

 

[Treottantone]

Oggi altro tonfo con una capitalizzazione sotto i 100 milioni. Potra’ reggere a questa settimana senza un’iniezione di liquidita’ da parte del governo norvegese? Secondo me no e credo diventera’ uno spartiacque di questa prima fase della crisi.

 

[AZ209]

Norwegian to cancel 85% of flights

Norwegian is suspending a big majority of its services and laying off 7,300 employees as it seeks to weather the coronavirus outbreak.
"The Covid-19 situation is escalating by the hour and due to stagnating demand and enforced travel restrictions by authorities worldwide, Norwegian will gradually cancel most of its flights and temporarily lay off a major share of its workforce," the airline says.
Calling the crisis "unprecedented and critical", Norwegian’s chief executive Jacob Schram states that the carrier has no choice but to "temporarily" lay off 90% of its workforce, including pilots, cabin crew, maintenance and administrative staff.
"I want to emphasise that this is temporary, because when the world returns to normalcy my goal is to keep as many of our dedicated colleagues as possible," Schram stresses. He notes that the Norwegian authorities "have communicated that they will implement all necessary measures to protect aviation in Norway, consequently securing crucial infrastructure and jobs."
From 21 March, Norwegian will fly a reduced scheduled domestically in Norway and between the Nordic capitals, as well as some European flights. All intercontinental services are cancelled except between Scandinavia and Thailand, with the last flights scheduled for the end of the month.
On 13 March, the carrier asked the Norwegian government for an immediate bailout to enable it to keep flying.
In a note issued the previous day, HSBC had said it expected Norwegian to face "cash-flow challenges in the near term," given the dramatic deterioration in market conditions and the US ban on travellers from Schengen-area European countries.
"Suppliers will likely take a very cautious view towards Norwegian, exacerbating cash challenges," wrote the bank. "The likelihood of airlines being able to raise significant amounts of new equity in the present environment does not look high."

Cirium

 

[East End Ave]

Oggi altro tonfo con una capitalizzazione sotto i 100 milioni. Potra’ reggere a questa settimana senza un’iniezione di liquidita’ da parte del governo norvegese? Secondo me no e credo diventera’ uno spartiacque di questa prima fase della crisi.

pochi davvero quelli che reggeranno lo spartiacque temo...e poi dalle ceneri nascera' nuova vita...ciclico...

 

[13900]

Norwegian to cancel 85% of flights

Norwegian is suspending a big majority of its services and laying off 7,300 employees as it seeks to weather the coronavirus outbreak.
"The Covid-19 situation is escalating by the hour and due to stagnating demand and enforced travel restrictions by authorities worldwide, Norwegian will gradually cancel most of its flights and temporarily lay off a major share of its workforce," the airline says.
Calling the crisis "unprecedented and critical", Norwegian’s chief executive Jacob Schram states that the carrier has no choice but to "temporarily" lay off 90% of its workforce, including pilots, cabin crew, maintenance and administrative staff.
"I want to emphasise that this is temporary, because when the world returns to normalcy my goal is to keep as many of our dedicated colleagues as possible," Schram stresses. He notes that the Norwegian authorities "have communicated that they will implement all necessary measures to protect aviation in Norway, consequently securing crucial infrastructure and jobs."
From 21 March, Norwegian will fly a reduced scheduled domestically in Norway and between the Nordic capitals, as well as some European flights. All intercontinental services are cancelled except between Scandinavia and Thailand, with the last flights scheduled for the end of the month.
On 13 March, the carrier asked the Norwegian government for an immediate bailout to enable it to keep flying.
In a note issued the previous day, HSBC had said it expected Norwegian to face "cash-flow challenges in the near term," given the dramatic deterioration in market conditions and the US ban on travellers from Schengen-area European countries.
"Suppliers will likely take a very cautious view towards Norwegian, exacerbating cash challenges," wrote the bank. "The likelihood of airlines being able to raise significant amounts of new equity in the present environment does not look high."

Cirium

A prescindere di tutto, in gamba a Sasha e a tutti i dipendenti DY.

 

[sasha]

Dura davvero dura, grazie ragazzi.

 

[Treottantone]

Qualcuno sa quanti dipendenti hanno in Norvegia e sopratutto quanti aerei di proprieta’ hanno rispetto a quelli presi a noleggio? Due variabili abbastanza importanti rispetto alle mosse che il governo Norvegese prendera’ nei prossimi giorni.

 

[airblue]

Credo che data l'evoluzione degli eventi, la mia tesi del salvataggio almeno del perimetro aziendale relativo alle operazioni intra Norvegia e da/per Norvegia sia quasi certo. Temo che il resto sarà lasciato al suo destino.

 

[Treottantone]

Chi sono i principali creditori dei 6 miliardi di debiti che hanno? Giusto per iniziare a fare un po’ di speculazioni intellettuali sul domino che sta per venire giu’ ?

 

[AZ209]

quanti aerei di proprieta’ hanno rispetto a quelli presi a noleggio? Due variabili abbastanza importanti rispetto alle mosse che il governo Norvegese prendera’ nei prossimi giorni.

Dei circa 160+ che hanno in flotta, oltre il 60% e' in leasing.

Ecco un grafico dell'esposizione per ogni lessor in termini percentuali.

 

[belumosi]

Dura davvero dura, grazie ragazzi.

Oggi azioni a +22%.

 

[leerit]

La notizia, ancora non confermata, perlomeno ha avuto il beneficio di far fare un balzo in avanti alle azioni di Norwegian: una crescita improvvisa del 20 per cento dopo che il titolo aveva toccato il minimo, meno di un euro, e la capitalizzazione totale abbondantemente sotto i cento milioni.

Per la compagnia norvegese si riapre ora uno spiraglio e anche per Norwegian potrebbe arrivare la soluzione italiana, quella che sta per essere attuata per Alitalia, la nazionalizzazione.

Con oltre il 90 per cento dei dipendenti a casa forzatamente e la quasi totalità dei voli fermi, oltre a un indebitamento che da alcuni viene stimato in circa 6 miliardi di euro, per la low cost a lungo raggio l’unica soluzione per mantenerla in vita potrebbe quindi essere quella del passaggio allo Stato. Mossa nei confronti della quale non mancano le polemiche a livello politico, ma il Governo norvegese è orientato a mantenere in vita una realtà che potrebbe rivelarsi importante nella successiva fase di ripresa. Proprio sulla falsariga di quello che sta succedendo, appunto, con Alitalia.


TTG