Super cheap way to get to Europe

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April 12th, 2018 at 5:13:38 AM permalink
Pacomartin
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In 2019, eight new Airbus A321LR jets will join the fleet of Norwegian. The airline is planning to use the narrowbodies on routes from London to the US East Coast and Midwest, citing Detroit, Philadelphia and Minneapolis as "examples of destinations that could be served". It adds that it will also consider Middle Eastern routes for the A321LR. The airline adds that it has "long-term ambitions to secure slots for a triple-daily Gatwick-New York service".

These routes will directly challenge Delta and American Trans-Atlantic routes



Norwegian has pulled out of Bradley CT, and now only offers Transatlantic B737 routes from Stewart, NY and Providence, Rhode Island. They have diverted some planes to smaller islands in the French Caribbean.


It may not be as easy as suspected to establish low cost single aisle Transatlantic service.
April 12th, 2018 at 9:03:39 AM permalink
Nareed
Member since: Oct 24, 2012
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Quote: Pacomartin
It may not be as easy as suspected to establish low cost single aisle Transatlantic service.


IAG, parent company of a gaggle of European Airlines including race-to-the-bottom BA and Iberia, has acquired a small stake (under 5%) in Norwegian Air Shuttle, airline and parent company of all the other Norwegian-brand airlines.

Just sayin'.
Donald Trump is a fucking liar
April 12th, 2018 at 10:10:33 AM permalink
Pacomartin
Member since: Oct 24, 2012
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Quote: Nareed
IAG, parent company of a gaggle of European Airlines including race-to-the-bottom BA and Iberia, has acquired a small stake (under 5%) in Norwegian Air Shuttle, airline and parent company of all the other Norwegian-brand airlines.

Just sayin'.


There seems to be an umbrella corporation and four subsidiaries
Norwegian Air Shuttle:30 A321LR on order; 60 B737-800; 104 B737 MAX 8 on order
(orders to be shared among subsidiaries)

Norwegian Air International 70 B737
Norwegian Long Haul 13 Dreamliners with another 15 on order
Norwegian Air UK 13 Dreamliners; 1 B737
Norwegian Air Argentina 1 B737


Although Norwegian seems to be taking the lead on flying Transatlantic single aisle jets to the US, it is still a minor part of their business which is dominated by the use of the Dreamliner.

But the cancellation of 1 out of 3 of the small US airports after only a few months does not bode well. Central Connecticut is reasonably far from the big airports. Providence RI is within an easy drive to Boston (43 air nautical miles), and many people view it as a reasonable alternative to the traffic in downtown Boston (especially if you live on that side of the city).
April 13th, 2018 at 7:21:54 AM permalink
Nareed
Member since: Oct 24, 2012
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Quote: Pacomartin
Although Norwegian seems to be taking the lead on flying Transatlantic single aisle jets to the US, it is still a minor part of their business which is dominated by the use of the Dreamliner.


Apparently the IAG investment is a prelude to making an offer for NAS, meaning a merger or a takeover. I'm not clear as to the purpose, or how Norwegian feels about it.
Donald Trump is a fucking liar
April 13th, 2018 at 10:47:27 AM permalink
Pacomartin
Member since: Oct 24, 2012
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Quote: Nareed
Apparently the IAG investment is a prelude to making an offer for NAS, meaning a merger or a takeover. I'm not clear as to the purpose, or how Norwegian feels about it.


Norwegian Air CEO Rejects Advance From British Airways Owner!


Norwegian's Gutsy Pilot Won't Leave the Cockpit Quietly An IAG bid for its budget rival could make sense.

With short-sellers targeting the stock, a balance sheet weighed down by vast liabilities and costs and competition increasing, a company's owners would normally be only too happy to get news of a possible takeover bid.

But Bjorn Kjos, the Norwegian Air Shuttle ASA boss who also controls about one quarter of its stock, isn't like most stakeholders. If IAG SA is serious about buying the cash-strapped budget airline, a proposition first reported by Bloomberg News, CEO Willy Walsh is going to need some real powers of persuasion.

As I've written before, Norwegian is skating on very thin ice. Determined to dominate the nascent market for cheap long-haul air travel, in 2012 it placed one of Europe's biggest ever jet orders. Six years later, taking delivery of those planes means it is burning through lots of cash, while getting transatlantic services up and running causes costs to balloon.

Kjos, a former fighter pilot and trained lawyer, knows only one direction though -- forward. Instead of curtailing his ambitions, he's launching a new airline in Argentina. And rather than cut his financial exposure to Norwegian, he sought to increase his stake last year.

So why would IAG be interested in an airline that Ryanair boss Michael O'Leary has suggested "is not long for this world?" For one, there's those aircraft orders. IAG could rapidly bulk up its own emerging budget long-haul services using the fuel-efficient Boeing 787 and 737 Max jets ordered by Norwegian. Any planes deemed surplus to requirements could be sold or deferred.

Norwegian has done much of the heavy lifting already. It's been training up crews and obtaining permission for new routes. By now, passengers are familiar with its brand and they seem to enjoy the experience. Norwegian has won plenty of awards.

IAG can afford it too. It has about 6.7 billion euros ($8.25 billion) of cash and equivalents, while net debt adjusted for capitalized leases is a modest 1.5 times a comparable measure of earnings. In contrast, Norwegian's lease-adjusted net debt is almost 12 times comparable earnings, according to Bloomberg Intelligence.

True, Norwegian's liabilities would take the shine off IAG's balance sheet. But with an enterprise value roughly fives times that of Norwegian, IAG can afford the risk. And it wouldn't have to spend as much expanding its own long-haul budget brand.

Even so, this is a distance from being a done deal. So far, IAG has acquired only a 5 percent stake and hasn't held discussions with Kjos. Having spent a quarter century building Norwegian, he's unlikely to be a willing seller, particularly not at what he'd consider a low point for the airline and before the fruits of the new transatlantic services are felt (even after today's surge, the shares are only back where they were a year ago). Other investors still holding the stock before today were also presumably convinced that his high-risk gamble would pay off.

Perhaps Walsh will convince Kjos that competing with IAG and other better capitalized airlines is suicide. But Kjos is hard to bully. This could turn into a dogfight.
https://www.bloomberg.com/gadfly/articles/2018-04-12/norwegian-s-gutsy-pilot-won-t-quit-the-cockpit-quietly
April 13th, 2018 at 1:58:11 PM permalink
Nareed
Member since: Oct 24, 2012
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Quote: Pacomartin
Norwegian Air CEO Rejects Advance From British Airways Owner!


For now.
Donald Trump is a fucking liar
April 14th, 2018 at 5:22:15 PM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 822
Posts: 9887
Quote: Nareed
For now.


Update 1/11/18 12:55pm ET: Both Norwegian and Rolls-Royce confirmed to TPG that contrary to reports by Norwegian media, the replacement of the Trent 1000 engines was part of a commercial agreement between the two in 2016. According to Rolls-Royce, Norwegian’s choice to install the Trent 1000 TEN engines on its 789 was in an effort to make its fleet more efficient and was “not related to current in-service issues with the Trent 1000 engine.”


Norwegian has 21 Dreamliners in its fleet — 13 787-9s and eight 787-8s. According to Lasse Sandaker-Nielson, the communications manager for the airline, the 789s will get new Trent 1000 TEN engines. The eight 788s will also get upgraded Rolls-Royce engines, however, they won’t be of the Trent 1000 TEN variety. Each of the new engines will reportedly cost approximately $20 million. So, for all of the aircraft to be upgraded with new engines, it will cost approximately $848 million. The cost of replacing the engines will reportedly be covered by Rolls-Royce.
May 15th, 2018 at 6:09:02 AM permalink
Pacomartin
Member since: Oct 24, 2012
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Quote: Pacomartin
WOW airlines in Iceland is purchasing widebody A330s and flying them in an all economy mode.




Wow Airlines is now trying to make Iceland a stopping point for flights from India to the USA starting this December. On a Delhi to LAX run it adds about 1000 miles over a nonstop, but it is considerably cheaper as you are talking about an all economy A330.

Wow Airlines is competing with Air india which is trying to increase nonstops from India to the USA, United which flies to Delhi from Newark, the Middle East airlines which probably transport the most number of passengers, and Indian low cost airlines that bring people via Amsterdam.

Wow Airlines might even have a future market in bringing low cost passengers from China to the East Coast
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