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Norwegian Ends 2018 With New Financing And Cost Reduction Plans

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(@james)
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Joined: 8 years ago
[#8793]
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There has been a lot of speculation all year about how close Norwegian has come to ceasing operations, based on their low level of free cash and difficulty in finding any more, as they continue to grow rapidly and for a while faced increased oil prices. This came to a head just before Christmas, when…

Continue reading: Norwegian Ends 2018 With New Financing And Cost Reduction Plans

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10 Replies
10 Replies
 Ruy
(@Ruy)
Joined: 14 years ago

Posts: 48

A liquidity position of 30 million dollars is nothing in the airline world. Unless they have some magic tricks up their sleeves I don’t see how they can survive.


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(@Gabriel)
Joined: 8 years ago

Posts: 142

Somewhat off topic, but I was looking to fly Norwegian in their new operation within Argentina later in January. When I tried to buy the ticket using the Norwegian Argentina website (in Spanish), it told me that it wouldn't accept foreign credit card (foreign to Argentina) and told me to change the currency from Argentina Pesos to other currency (US Dollar). When I did that, the price went up by about US$10 to $15 depending on fare type (based on the current exchange rate). Has anyone experience this before?


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(@Jordan)
Joined: 16 years ago

Posts: 425

$30 million NOTHING!! wow, feel bad for them. BA is sharpening the knife for sure 🙁


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(@glenn-t)
Joined: 5 years ago

Member
Posts: 0

Hard to see where extra cost-cutting could occur, being pretty bare-bones already. Hope it survives however, as the product is acceptable provided one does not have great expectations.


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 AEP
(@AEP)
Joined: 9 years ago

Posts: 7

@Gabriel
That's the way it is. I assume it is DY's way of simulating the difference between resident and non-resident prices that other Argentine airlines use.


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 BL
(@BL)
Joined: 8 years ago

Posts: 23

@Gabriel

Yes. This happened to me recently and I can't explain it; I assume it must be Norwegian complying with some Argentinean legal requirement or what not. I don't think it's an IT thing, and you're not alone. In my case, I just coughed up the extra $10 or $15 per leg. It's not so bad.


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(@Fred M)
Joined: 10 years ago

Posts: 194

Reminds me of ‘Tell ‘em Continental’ dicing with Chapter 11 back in the early 80s. A friend was mates with a captain and the advice was ‘book the day before you fly and cross your fingers’.

My one experience with Norwegian, to Oslo and back, was excellent - one leg in a brand new 737 Sky Interior - but it’s tough out there.


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 ATH
(@ATH)
Joined: 8 years ago

Posts: 1

I was looking to book flights from NY to Krakow via Oslo for a week-long business trip in early March. I am apprehensive re. booking and have a few questions. 1) Has Norwegian completed the changes they are making to their routes? Will there be last-minute cancellations? 2) Have the repairs to the Dreamliner engines been completed? I've read that they were contracting out some of the flights to other (perhaps charter?) companies with old aircrafts in poor condition. Please let me know if you have answers to the above. Thank you.


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(@Noah Bowie)
Joined: 9 years ago

Posts: 247

They are low cost so what costs are there to cut. I can only think that planes and people are on the chopping block. I doubt Norwegian will be able to cut costs to the degree they've said. When they try to lay off staff the unions will lose the plot and IAG will swoop in for a takeover.


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 LB
(@LB)
Joined: 8 years ago

Posts: 1

I was offered a job from norwegian. my question is do you think it is safe to join them now?
I should quit my job and still not sure about that.


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