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Slightly off topic. To any Norwegians around HN: Were they in trouble before the corona crisis ? Stock value[1] started a heavy downward trend around Feb 2018,

by fasteo 7y ago

Slightly off topic. To any Norwegians around HN: Were they in trouble before the corona crisis ? Stock value[1] started a heavy downward trend around Feb 2018, from 171 down to 41 before corona crisis, down to 7 as of today. I am based in Spain, and I am seeing this same trend in some local companies. It seems that coronavirus is the trigger for an existing, latent problem. [1] https://www.reuters.com/companies/NWC.OL/charts https://www.reuters.com/companies/NWC.OL/charts

Jommi 7y ago
Yes they were, cheap longhaul flights stopped being profitable and they were having huge issues. I think low cost longhaul will die after this epidemic.
- kzrdude 7y ago
  Norwegian was pretty hard hit by the 737-MAX crisis
vegardx 7y ago
They have been struggling for quite some time. They got hit quite bad with the grounding of 737 MAX (10% of fleet), and before that they a lot of issues with the 787 Dreamliner (20% of fleet).
- hjnilsson 7y ago
  They also signed a contract pegging fuel prices for the foreseeable future when oil price was $70. Several unlucky breaks in a row, I don’t really think it will be saved. SAS might though.
- tyfon 7y ago
  They've also been "gearing" their business a lot using massive amounts of debt. They were extremely sensitive to changes in income.
mihaaly 7y ago
The Norwegian was in trouble way before the virus. They had to be rescued due to mounting losses. The 737 MAX crisis also hit them hard to which they were exposed more than average. Some links (there are much more): https://www.forbes.com/sites/davidnikel/2019/09/16/norwegian-given-time-as-bondholders-accept-rescue-plan/#206813f247f1 https://www.forbes.com/sites/davidnikel/2019/09/16/norwegian... https://qz.com/1688156/why-is-norwegian-air-failing/ https://qz.com/1688156/why-is-norwegian-air-failing/ Because of the troubles I avoided them for transatlantic travel not risking last minute cancellations due to bankruptcy. I doubt that I was alone.
e12e 7y ago
Their basic business plan has always been to walk a tightrope.

by fasteo 7y ago

Jommi 7y ago

Yes they were, cheap longhaul flights stopped being profitable and they were having huge issues. I think low cost longhaul will die after this epidemic.

kzrdude 7y ago
Norwegian was pretty hard hit by the 737-MAX crisis

vegardx 7y ago

They have been struggling for quite some time. They got hit quite bad with the grounding of 737 MAX (10% of fleet), and before that they a lot of issues with the 787 Dreamliner (20% of fleet).

hjnilsson 7y ago
They also signed a contract pegging fuel prices for the foreseeable future when oil price was $70. Several unlucky breaks in a row, I don’t really think it will be saved. SAS might though.
tyfon 7y ago
They've also been "gearing" their business a lot using massive amounts of debt. They were extremely sensitive to changes in income.

mihaaly 7y ago

The Norwegian was in trouble way before the virus. They had to be rescued due to mounting losses. The 737 MAX crisis also hit them hard to which they were exposed more than average. Some links (there are much more): https://www.forbes.com/sites/davidnikel/2019/09/16/norwegian-given-time-as-bondholders-accept-rescue-plan/#206813f247f1 https://www.forbes.com/sites/davidnikel/2019/09/16/norwegian... https://qz.com/1688156/why-is-norwegian-air-failing/ https://qz.com/1688156/why-is-norwegian-air-failing/ Because of the troubles I avoided them for transatlantic travel not risking last minute cancellations due to bankruptcy. I doubt that I was alone.

e12e 7y ago

Their basic business plan has always been to walk a tightrope.