The money pit that is Norwegian continues to suck in more debt – this time another $168m arranged through a complex private share placement – effectively borrowed money – on the same day that the airline has the nerve to declare it’s likely to lose twice as much as it just borrowed, in the first quarter of 2018 alone.
Norwegian seems to be one of the most extraordinary money recycling business in the world.
The money has been raised to cover operational costs and down payments on yet more aircraft, that will keep feeding the cash hungry monster the company has become.
The cycle of loss and borrowing, coupled to rising costs while spending vast sums on leased aircraft, has simply got to hit a wall at some point. When it does, I won’t lament its passing. In the end it’s doing a gross disservice to the market and customers.
When it’s bubble bursts – and it will – it will leave the mega-group airlines in even more control of European and trans-Atlantic travel as they race to fill the void, and nobody will be around – or willing – to fill that gap independently.