Norwegian is on a road to nowhere
The Government of Norway has declined to provide Norwegian with any more bailout funds, placing it in a dire situation it seems unlikely to recover from.
A few months ago the airline bailed itself out with a mix of bank, government and investor funds. The process was supported by shareholders who lost a fortune in a restructure, and it was conditional on the airline keeping to its basic promise: hibernating the airline until late 2021.
While its has done that with its international arm, it has not done so with its European domestic arm and continued to fly on several routes, burning through the small amount of cash it had left.
While trying to blame the government, the airline is now furloughing another 1,600 staff, which it should have done a long time ago.
I have long believed that Norwegian, with its opaque and convoluted financial structures that created a miasma of unrealistic financial results, was unsustainable. It has never once kept to what it said it would do and its over-rapid expansion lies at the heart of its problems.
United adds 1,400 flights for Thanksgiving
Demand is roaring for Thanksgiving weekend and already, fares for flights top Washington DC on Jan 19 are selling well.
Demand across all of the airlines is heading up. While this is good for airlines, you have to ask if this is really a good thing with Covid spreading at such an alarming pace around the country, and this likely to escalate it further? It’s like nobody cares any more. A quarter million deaths, running at 1,000 a day, with over 100,000 new infections daily, emergency ICU facilities over run and yet a desperation to carry on as though its not happening.
United alone is adding 84 different destinations with extra flights to meet demand for the 23rd November.
While air travel itself is seen as a low risk infection point, its still astonishing how many people are prepared to take the risk.
Singapore updates its full H1 results and future aircraft retirements
The SIA Group lost US$3.5 billion in the first six months of its financial year (April-September 2020).
Along with the 7 A380’s retiring, 4 777-200 and 200ER’s, 4 777-300’s, 9 A320 and 2 A319’s will also be retired from group airlines.
15 A350-900’s, 29 A320neo and 16 A321neo have all been deferred in agreement with Airbus.
Pobeda cancels MAX
Russian low cost carrier Pobeda, an Aeroflot subsidiary, has declined to continue with its 30 aircraft order for the 737MAX.
It’s another blow for Boeing who have seen almost 500 cancellations for the aircraft in the last two years.