The UK’s Sunday Times news paper yesterday published a scathing critique of Norwegian Airlines, describing it in effect as disorganised, unviable and financially unsound both in cash and in its behaviour.
The Sunday Times – considered the UK’s most factual newspaper, revealed how the Norwegian Government Financial Regulator had been investigating the airlines relationship with its bank. It showed how a complex trading scheme with shares had enabled the airline to – as revealed by AviationNews.Online – cheat its way out of losses at the end of the first quarter of 2018 through a dodgy paper transaction that in effect hid the real loss.
Bjorn Klos the primary share holder and CEO was shown to be lending shares to short sellers on the stock market to make money on the airlines losses!
The airlines massive order book and huge debt are predicted by financial analysts to be unsustainable and the airline is widely seen as unlikely to survive the summer season unless a massive restructure or an IAG buyout happens.
The IAG share purchase has seen the companies stock price rise 67% – analysts feel that its the only chance for Norwegian – it simply cannot go on as is, especially now the Norwegian regulator has forced it to stop hiding its losses again in dodgy banking transactions.