Norwegian air

Locker10a

jucylucy wrote: »

Boeing let all their engineers in Dublin go recently...the Max aircraft are looked after by an independent provider now.
The NGs by the hangar are being delivered to Transavia shortly.....

Thanks

smurfjed

Their shares are bouncing back :)

Locker10a

smurfjed wrote: »

Their shares are bouncing back :)

Perhaps hope the administration process will work, they’ll probably still have to divest a lot of the fleet and routes

theguzman

Why would you store aircraft long term like this in Ireland? Our climate is absolutely appalling and costs sky high, it would have made more sense to store them in Spain, Morocco or in the UAE even.

jucylucy

They were in Dublin when grounded and stayed here since then...not ideal. Their financial problems and registration change probably added to keeping them here.

Tabnabs

Norwegian has announced it will no longer fly long-haul routes, even after the pandemic, bringing an end to its low-cost, long-haul vision and spelling the loss of about 1,100 jobs based at Gatwick airport.

The airline said it would retrench to a short-haul European network and domestic Norwegian routes for good, as it outlined its business plan for survival.

About 2,150 jobs in the UK, Spain, France and the US will be axed, with one union warning that the airline industry is in an employment “death spiral”.

Norwegian will no longer retain any of its fleet of Boeing 787 Dreamliners that it used to fly long-haul, and reduce its overall fleet to 50 narrowbody planes.

https://www.theguardian.com/business/2021/jan/14/norwegian-axes-long-haul-flights-and-cuts-1100-gatwick-jobs

In before the Ryan Air crowd arrive. :pac:

Inquitus

Tabnabs wrote: »

https://www.theguardian.com/business/2021/jan/14/norwegian-axes-long-haul-flights-and-cuts-1100-gatwick-jobs

In before the Ryan Air crowd arrive. :pac:

Ryanair going to go Transatlantic? :pac:

Rawr

Tabnabs wrote: »

https://www.theguardian.com/business/2021/jan/14/norwegian-axes-long-haul-flights-and-cuts-1100-gatwick-jobs

In before the Ryan Air crowd arrive. :pac:

Not too surprising. The inter-Europe / domestic routes had been Norwegian's bread & butter for so long. The long-haul business was a balls-y move, but if they are just holding onto survival I guess it makes sense for them to stick with what they know works.

California Dreamer

8 788/9 going cheap...the world of low cost long haul rarely works but if anyone could do it it would be Ryanair.

I suppose this will also help the EI cause for their TA ops from MAN. LGW might be on the cards for them.

Time will tell I suppose.

basill

Yep that seems about right for the lease versus owned from the attached.

https://www.flightglobal.com/fleets/norwegians-lessors-gain-some-certainty-at-least/141962.article

In terms of UK expansion IAG also has Level.

Tenger

smurfjed wrote: »

Their shares are bouncing back :)

Probably worth a punt for some investors.
Buy the shares for a bargain, wait for them to restructure and get back flying again.
Then sell them for a profit.

Tenger

Tenger wrote: »

Probably worth a punt for some investors.
Buy the shares for a bargain, wait for them to restructure and get back flying again.
Then sell them for a profit.

Just like FlyBE.

Tenzor07

California Dreamer wrote: »

8 788/9 going cheap...the world of low cost long haul rarely works but if anyone could do it it would be Ryanair.

I think NAS have proven that low-cost long haul doesn't work....even for Ryanair.

Locker10a

Tenzor07 wrote: »

I think NAS have proven that low-cost long haul doesn't work....even for Ryanair.

Yeah, if Ryanair knew there was cash to be made they’d be doing it already. Reality is they can make more money doing what they do now. Which is funnily enough the same thing Norwegian are retreating to, short haul, 737 multi sector days, in known and established markets

theguzman

Pity to see them go, they were amazingly competitive to Stewart and also to Rio de Janeiro from LGW.

Another airline unencumbered from debts could take it up. Norwegian had so many swings and misses but routes to East Coast north America from Dublin seemed to be near economic. Ryanair have got too many opportunities elsewhere to be distracted by this. They could be using that airframe to be p1ssing in a half dozen other airlines' paddling pools daily. Seasonality doesn't help either to US. Push a flag carrier off a city pair in Europe and you have year round business.

MoeJay

The major difficulty is that all of the things you can do "low cost" short haul are nigh-on impossible to replicate on long haul, for example:

- 6 sectors a day utilising 2-3 crews on the same aircraft
- 6x booking fees, credit card fees, admin fees for each seat
- 6x on board revenue opportunity (food drink etc)
- 6x priority boarding, baggage fees etc - whatever else can be monetised!!

Majority of clear profit taking is done in this model with the 737. Ryanair are experts at it.

So when you fly 180 people on a Max across the Atlantic you do not have the same revenue opportunities in the same 24 hour period and your other charges go up to meet your fixed costs. Quite quickly you find yourself charging close to the competition per seat but they are selling 300 seats at a time and not 180. If you are targeting the extremely price sensitive end of the market it means limited potential.

Air Canada will probably do quite well flying the Max across the pond but it won't be on €99 tickets....