Author Topic: Norwegian Solvency  (Read 933 times)

Offline voicemd

  • DansDeals Copper Elite
  • *
  • Join Date: Jan 2014
  • Posts: 2
  • Total likes: 0
  • DansDeals.com Hat Tips 0
    • View Profile
Norwegian Solvency
« on: May 30, 2019, 08:21:19 PM »
Does anyone have meaningful comment on the solvency of Norwegian?  After the WOW debacle with people getting stranded, I am wondering if it is safe to book a flight for late summer this year on Norwegian given how much money they are losing.  All thoughts appreciated

Offline Denverite

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: May 2015
  • Posts: 2006
  • Total likes: 181
  • DansDeals.com Hat Tips 1
    • View Profile
  • Location: Denver
Re: Norwegian Solvency
« Reply #1 on: May 30, 2019, 11:07:22 PM »
Does anyone have meaningful comment on the solvency of Norwegian?  After the WOW debacle with people getting stranded, I am wondering if it is safe to book a flight for late summer this year on Norwegian given how much money they are losing.  All thoughts appreciated

+1 I’d love to hear thoughts on this. Especially since it’s one of only three airlines with direct flights to Europe from where I live.

@Dan maybe even worth a DDMS “update” post on the status of some of the shaky airlines and strategies to mitigate risks if there is some kind of problem (which cc’s have the best insurance coverage, etc). I’m also hesitant to buy very cheap AlItalia flights because I don’t really understand what their financial status is.

Offline AsherO

  • Global Moderator
  • Dansdeals Lifetime 30K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 30535
  • Total likes: 7832
  • DansDeals.com Hat Tips 79
    • View Profile
  • Location: NYC
Re: Norwegian Solvency
« Reply #2 on: May 31, 2019, 09:09:11 AM »
I’ve been wondering the same. Part of the issue of giving these shaky airlines bad press is that that bad press is to some extent a factor in doing these airlines in by perpetuating the negative sentiments and driving consumers to take their business elsewhere.

Positive factors for Norwegian (in the short term) :
Money they’re getting from aircraft (and engine?) manufacturers to compensate them for grounded jets due to design flaws (IIRC this is applicable to 737Max and 787).
Strong summer yields
Revenue from short term leasing, as a result of the recent equipment shortages
Acquisition talks with IAG, though realistically I don’t think this is going anywhere anytime soon

Negative factors for Norwegian:
Rising fuel costs
Increase in CC holdbacks due to issuers concerned about their solvency (this factor alone has done in many an airline)
100% of Likes will be donated to support our brothers and sisters in Eretz Yisrael

Offline Sig

  • Dansdeals Gold Elite
  • ***
  • Join Date: Oct 2014
  • Posts: 128
  • Total likes: 19
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: United States
Re: Norwegian Solvency
« Reply #3 on: May 31, 2019, 08:08:00 PM »
I’ve been wondering the same. Part of the issue of giving these shaky airlines bad press is that that bad press is to some extent a factor in doing these airlines in by perpetuating the negative sentiments and driving consumers to take their business elsewhere.

Positive factors for Norwegian (in the short term) :
Money they’re getting from aircraft (and engine?) manufacturers to compensate them for grounded jets due to design flaws (IIRC this is applicable to 737Max and 787).
Strong summer yields
Revenue from short term leasing, as a result of the recent equipment shortages
Acquisition talks with IAG, though realistically I don’t think this is going anywhere anytime soon

Negative factors for Norwegian:
Rising fuel costs
Increase in CC holdbacks due to issuers concerned about their solvency (this factor alone has done in many an airline)
Jet fuel prices are 20% lower than this time last year (https://www.iata.org/publications/economics/fuel-monitor/Pages/index.aspx)