Updated: IAG to offload Norwegian Air stake after bids fail according to FT

winter · Thu May 10, 2018 5:05 pm

RexBanner wrote:
Maybe because they’re an unprofitable business muscling in on routes where there is already an overcapacity and undercutting the established operators and, in the process, putting pressure on the Ts and Cs of the staff at those legacy airlines in order for them to compete. How would you feel if someone came along and said they could do your job for less, below cost, putting your mortgage at risk? Would you be such an aviation enthusiast about it then?

Welcome to the free market.

RexBanner · Fri May 11, 2018 7:51 am

I’m aware of that. Just giving a reason why some people might think Norwegian aren’t all that fantastic.

CrawleyBen · Fri May 11, 2018 7:52 pm

According to the CH-Aviation site this evening, IAG are mulling a joint bid for Norwegian with Ryanair. The article is a pro one, so I can't access the story itself, but I've posted the link anyhow.

https://www.ch-aviation.com/portal/news ... -norwegian

Ben

Nami · Sat May 12, 2018 12:50 pm

CrawleyBen wrote:
According to the CH-Aviation site this evening, IAG are mulling a joint bid for Norwegian with Ryanair. The article is a pro one, so I can't access the story itself, but I've posted the link anyhow.

https://www.ch-aviation.com/portal/news ... -norwegian

There were rumors about this in a Spanish paper (Expansion) earlier this week, not sure if that’s where the story comes from. It was claimed that several IAG shareholders proposed IAG to work with another airline for a new bid on Norwegian.

I believe the gist of the story was that Ryanair would take over the narrowbodies and IAG would take the widebody fleet.

shamrock350 · Sat May 12, 2018 1:24 pm

Norwegian has no chance if IAG and Ryanair get their hands on it. If it goes ahead and gets approved by the regulators you can bet the two Irish men in charge will carve Norwegian up, long haul for IAG and short haul for Ryanair.

Galwayman · Sat May 12, 2018 1:37 pm

A joint IAG Ryanair bid is pure genius , Makes complete sense ... and following on Ryanair to feed Long haul ... brilliant , bring it ont

Something like ...
Short haul 737s to Ryanair , Norwegian brand possibly retained

787s to BA , IB and Level

A321lrs to EI, IB and Level

readytotaxi · Sat May 12, 2018 4:24 pm

Gotta get past the regulator first, is it in the public interest?

LTU932 · Sat May 12, 2018 4:48 pm

readytotaxi wrote:
Gotta get past the regulator first, is it in the public interest?

Such a merger could still get the EU commission involved, given that IAG is officially a Spanish company albeit with its corporate HQ in future non-EU United Kingdom. So it would possibly involve regulators from Norway, the UK and the EU.

Jayafe · Sat May 12, 2018 4:51 pm

Galwayman wrote:
Short haul 737s to Ryanair , Norwegian brand possibly retained

Can't even imagine MOL controlling himself enough to allow missing the opportunity to wipe the floor with DY's brand.

Galwayman wrote:
787s to BA , IB and Level

Not happening with IB at all. Happening maybe with Level (showed interest in the past) as they could dump their news A330s back to IB and keep the fleet commonality that is so handy and IAG likes that much. Unlikely though until Level gets its own AOC, pool of pilots, call, etc... (right now it's IB with a vinyl, hence the A330 selection)

BrianDromey · Sat May 12, 2018 5:30 pm

Jayafe wrote:
Not happening with IB at all. Happening maybe with Level (showed interest in the past) as they could dump their news A330s back to IB and keep the fleet commonality that is so handy and IAG likes that much. Unlikely though until Level gets its own AOC, pool of pilots, call, etc... (right now it's IB with a vinyl, hence the A330 selection)

When IAG announced LEVEL was to operate from ORY it implied that openSkies would operate these flights, but looking at the website now, Im not so sure. My impression was that openSkies would become the defacto LEVEL AOC, but maybe plans have changed.

EDIT:
The ITA Matrix notes EWR-ORY as
Iberia 2675

Airbus A330
OPERATED BY OPENSKIES FOR LEVEL

barney captain · Sat May 12, 2018 5:44 pm

This article confirms that it's in consideration by NAS - I agree, this could be the end for them.

IAG shareholders proposes joint Norwegian bid with Ryanair
11 May 2018
Several UK shareholders of International Airlines Group (IAG) have proposed that the airline group work with Ireland's Ryanair on another attempt to purchase Norwegian Air Shuttle.

The proposal by the UK-based shareholders suggests that IAG would maintain the long-haul operations of Norwegian, while Ryanair would pick up the short-haul.

IAG currently holds a 4.6% stake in Norwegian, with two bids for the remaining stake recently rejected by Norwegian.

Norwegian is open to a deal at the right price, according to its CEO, Bjorn Kjos.

https://newsroom.aviator.aero/iag-propo ... h-ryanair/

aemoreira1981 · Sat May 12, 2018 6:02 pm

Nami wrote:
CrawleyBen wrote:
According to the CH-Aviation site this evening, IAG are mulling a joint bid for Norwegian with Ryanair. The article is a pro one, so I can't access the story itself, but I've posted the link anyhow.

https://www.ch-aviation.com/portal/news ... -norwegian

There were rumors about this in a Spanish paper (Expansion) earlier this week, not sure if that’s where the story comes from. It was claimed that several IAG shareholders proposed IAG to work with another airline for a new bid on Norwegian.

I believe the gist of the story was that Ryanair would take over the narrowbodies and IAG would take the widebody fleet.

Or this might be RyanAtlantic that Michael O'Leary had thought of, but had dropped. Ryanair right now does some interline with Norwegian and Aer Lingus (stake formerly held by Ryanair) and sells capacity on Air Europa. I wouldn't be surprised if Ryanair puts in a surprise bid for the whole operation or at the very least, forces Indigo Partners to consider a potential bid with European investors as well. The bidding war for Norwegian is heating up.

However, I cannot see a way that this deal gets approved where IAG keeps the long-haul operations intact with such a large share out of London (especially with having a combined 83 weekly flights between JFK and LHR/LGW), although as another poster said, Iberia could add new routes with the A332s taken off of LEVEL. I see a RyanAtlantic concept as more likely.

LHRFlyer · Sat May 12, 2018 7:33 pm

I can't see IAG wanting to buy part of Norwegian and not the brand.

There's a lot of complexity behind Norwegian with multiple AOCs and debt. The brand is one of the strongest assets, particularly so because IAG is weak in Northern Europe. An airline with a strong brand name is exactly what IAG would be looking for.

jfk777 · Sat May 12, 2018 10:11 pm

Galwayman wrote:
A joint IAG Ryanair bid is pure genius , Makes complete sense ... and following on Ryanair to feed Long haul ... brilliant , bring it ont

Something like ...
Short haul 737s to Ryanair , Norwegian brand possibly retained

787s to BA , IB and Level

A321lrs to EI, IB and Level

Norwegian is worth more as a fleet for its assets then the brand and operation they currently have. What airline currently has a huge fleet of 787 ready to be reconfigured and repainted ? Rip out the front economy seats. move the Premium Economy seats back and put in some J class seats in ready to go for full service airline.

3AWM · Sun May 13, 2018 9:17 am

I think the bit about shareholders opinion tells us something about how IAG see the structure going forward. It seems that there are some bits of Norwegian IAG really wants and some bits it doesn't want at all.

I don't think it's going to be as simple as short haul/long haul or by aircraft type. I think IAG are going to favour absorbing the bits of Norwegian that support a hub a spoke operation based around key cities. The point to point flying, especially on holiday routes like Majorca and Lanzarote etc I think they will happy for Ryanair to take.

I think they will retain the Norwegian brand but only in Scandinavia. I see them building a hub at Oslo for Asian flights in a similar strategy to building up Dublin for TATL. I see it more as a wholly owned replacement for the Finnair JV than a competitor for SAS.

I think they would be crazy to have the UK airline in anything other than a BA - linked brand. BA LEVEL? They will take all the slots a LGW regardless, no competition issues, its a no-brainer.

I would guess the Irish AOC for Norwegian Long Haul will go under Aer Lingus's wing and maybe become a sort of Euro-LEVEL.

The Argentine AOC I guess logically could go to Iberia, or maybe Vueling is a better fit. I think there is a good chance IAG will see that whole venture as too risky and try and offload it or close it.

a350lover · Sun May 13, 2018 10:24 am

BrianDromey wrote:

When IAG announced LEVEL was to operate from ORY it implied that openSkies would operate these flights, but looking at the website now, Im not so sure. My impression was that openSkies would become the defacto LEVEL AOC, but maybe plans have changed.

EDIT:
The ITA Matrix notes EWR-ORY as
Iberia 2675

Airbus A330
OPERATED BY OPENSKIES FOR LEVEL

I am missing something here. If all Level flights from ORY were to be operated with OpenSkies crews and aircrafts. Why are they all under IBE code flights? What's the current code for the ORY-EWR Openskies flights? BA8003? Do they have its own AOC? Are they maybe planning to use BCN crews to operate flights out of the whole network, thus ORY flights too?

senatorflyer · Sun May 13, 2018 10:40 am

3AWM wrote:
I think the bit about shareholders opinion tells us something about how IAG see the structure going forward. It seems that there are some bits of Norwegian IAG really wants and some bits it doesn't want at all.

I don't think it's going to be as simple as short haul/long haul or by aircraft type. I think IAG are going to favour absorbing the bits of Norwegian that support a hub a spoke operation based around key cities. The point to point flying, especially on holiday routes like Majorca and Lanzarote etc I think they will happy for Ryanair to take.

I think they will retain the Norwegian brand but only in Scandinavia. I see them building a hub at Oslo for Asian flights in a similar strategy to building up Dublin for TATL. I see it more as a wholly owned replacement for the Finnair JV than a competitor for SAS.

I think they would be crazy to have the UK airline in anything other than a BA - linked brand. BA LEVEL? They will take all the slots a LGW regardless, no competition issues, its a no-brainer.

I would guess the Irish AOC for Norwegian Long Haul will go under Aer Lingus's wing and maybe become a sort of Euro-LEVEL.

The Argentine AOC I guess logically could go to Iberia, or maybe Vueling is a better fit. I think there is a good chance IAG will see that whole venture as too risky and try and offload it or close it.

Interesting points. I was thinking myself that it won’t be a straightforward split between SH/LH.

What we do know about BA is that they are in need of A320s maybe even some A321s for LGW to fill the ex Monarch slots. We also know, they are short of some LH aircraft at LHR. Open skies or Level in Paris also need new aircraft.

I think what could happen is, Ryanair gets part of the SH network and might sign a deal to take over the rest of the 737 planes once the Airbus fleet (97 planes?) gets delivered. Norwegian will retain its brand within IAG on SH out of key cities in Northern and Central Europe.

Once Norwegian LH is gone I think there won’t be as much pressure for Level expansion. Iberia’s Level A330s will go back to Iberia for expansion or maybe to Aerlingus if they need them more. Some of the 787 will go to Level, the rest remains for BA in Gatwick and a few for Heathrow maybe.

At some point in future I could see IAG to merge Vueling, Level and Norwegian retaining the Norwegian brand for all low cost activities on continental Europe. Vueling’s rep is bad and you can’t pronounce it’s name or don’t know how to anyway and Level is a virtual airline while Norwegian’s rep is actually pretty good.

3AWM · Sun May 13, 2018 11:18 am

I pretty much agree.

I don't see IAG opening the kind of routes Norwegian has at LGW or BCN. I see routes like LGW-LAX and LGW-SIN going because they compete too much. In the UK AOC they would be obtaining any airline with low cost T&Cs which might open up some new possibilities on routes with good demand but low yield. Stuff like LGW-MNL. London had plenty of O&D demand that can be exploited.

I think they will use the LCLH model to complete with LH group and AF/KLM though, plus to fill the void in Italy.

Also agree on Vueling, no-one seems to like that brand, not even IAG. I think if they thought it had a future they would have used it instead of LEVEL. Seems more likely that Vueling will be merged under LEVEL brand than vice-versa.

Galwayman · Sun May 13, 2018 2:45 pm

The idea that a bit of Norwegian be retained at Oslo to build a hub to Asia that competes with Finnair is really really interesting ... however I think Norwegian would have done this itself if they could have gotten overflights for Russia which u fortunately they didn’t get ... the Norwegian Oslo >BKK service goes all over the place to avoid Russian airspace in my experience ... and adds additional hours to the journey

Nami · Sun May 13, 2018 3:21 pm

Galwayman wrote:
The idea that a bit of Norwegian be retained at Oslo to build a hub to Asia that competes with Finnair is really really interesting ... however I think Norwegian would have done this itself if they could have gotten overflights for Russia which u fortunately they didn’t get ... the Norwegian Oslo >BKK service goes all over the place to avoid Russian airspace in my experience ... and adds additional hours to the journey

Norwegian has been able to use Russian airspace from OSL to BKK for more than a year now and if I recall correctly it was also made possible from ARN and CPH a few months ago.

HEL still has the benefit over OSL that 24-hour rotation is not doable from OSL to most parts of Asia. Hub at OSL would require them to establish a slew of new routes and up the frequencies on existing ones.

a350lover · Sun May 13, 2018 3:37 pm

Galwayman wrote:
The idea that a bit of Norwegian be retained at Oslo to build a hub to Asia that competes with Finnair is really really interesting

Finnair has in fact a great level of partnership and codesharing with all IAG members, so, unless IAG is not happy with that level of cooperation anymore, I don't see a posible Norwegian integrated in IAG beating face to face with Finnair for the traffics to Asia.

Duplicity and overcapacity will also be treated. For instance, in Barcelona, out of Norwegian's short-haul network, I believe just TRD, BLL and SVG see no competitors. All the rest, plus the long-haul operation clashes quite a lot with other IAG operators. Same probably happens in London.

I reckon if Norwegian is eventually acquired, all the network would be reconsidered, so probably some routes would certainly decrease capacity.

3AWM · Sun May 13, 2018 4:49 pm

The 2 other Oneworld members in Europe are BA and Iberia, both represent much bigger markets than Finnair's domestic market. London is also light on Asia routes for the size of the market. My guess is BA and Iberia sell a lot more seats for Finnair than Finnair sell for IAG. IAG will also have that data. I would say that IAG could forecast with an element of certainty how many seats they could shift to a venture through Norwegian just my moving those BA and IB codes out of the existing JV and putting them on an equivalent flight operated by Norwegian.

Whichever way you look at it if IAG buys Norwegian they will be competing with Finnair in the Scandinavian region.

BrianDromey · Sun May 13, 2018 6:50 pm

It is interesting that IAG and FR might carve up Norwegian between them. Between them IAG and Norwegian carry about 11 million passengers from LGW, for a market share of about 24%. In comparison easyJet carries something like 16 million.

I can't see how IAG and FR dividing up Norwegian benefits either airline. IAG can well afford Norwegian (and its debt), as could FR, so why hand some of the market to a competitor? I don't think there would be huge competition concerns, certainly not in Scandinavia. The UK (LGW) and Spain (BCN, PMI) are significant overlaps in the business, but I don't think such drastic disposals would be required that IAG would need a partnership bid with FR?

CX747 · Sun May 13, 2018 7:00 pm

IF you like Norwegian, then any thought of them being split by Ryanair and IAG should not be high on your wish list.

IF this goes through, Norwegian is dead. Any future plans the prior management team had is dead. Future aircraft orders are thrown up in the air. It would truly be who wants what routes, who wants which 737 and who wants which 787. A321LRs may never show up on property. The same may happen to future MAX & 787 orders.

Count the slots that are there now, the routes flown now and the aircraft flying those routes. Anything else has a high probability of becoming a pipe dream once Ryanair and IAG take over.....787s may ply routes BA fancies better, 737-8s may expand Ryanair service in Europe and not over the Atlantic. New A321s may never wing their way to the US but expand inter-European BA services....IF they are ever delivered!

Think of it this way. AirTran operated 717s and 737s. There aren't any 717s in WN's fleet nor any aqua colored 737NGs......

CX747 · Sun May 13, 2018 7:09 pm

BrianDromey wrote:
It is interesting that IAG and FR might carve up Norwegian between them. Between them IAG and Norwegian carry about 11 million passengers from LGW, for a market share of about 24%. In comparison easyJet carries something like 16 million.

I can't see how IAG and FR dividing up Norwegian benefits either airline. IAG can well afford Norwegian (and its debt), as could FR, so why hand some of the market to a competitor? I don't think there would be huge competition concerns, certainly not in Scandinavia. The UK (LGW) and Spain (BCN, PMI) are significant overlaps in the business, but I don't think such drastic disposals would be required that IAG would need a partnership bid with FR?

It could truly come down to.....IAG wanting 787s for it's own expansion plans and FR wanting 737NGs and Max's at a faster pace to build up Europe ops. They could sell delivery slots for the 737 Max, 787 and A321 IAG/FR don't feel are necessary. New jets, new markets, with built in pax demand is a nice deal.

Mortyman · Tue May 15, 2018 3:43 pm

Easyjet is not interested in buying Norwegian Air Shuttle but is open for consolidation in the European aviation market

says CEO Johan Lundgren in Easyjet, according to Dow Jones Newswires, writes TDN Direkt.

https://www.hegnar.no/Nyheter/Boers-fin ... -Norwegian

CX747 · Tue May 15, 2018 6:09 pm

Tough to see Easyjet and Norwegian coming together. A319/320 vs 737/787 doesn’t mix well. One wonders how Easyjet view Norwegian now against an IAG controlled into.

Polot · Tue May 15, 2018 6:18 pm

CX747 wrote:
Tough to see Easyjet and Norwegian coming together. A319/320 vs 737/787 doesn’t mix well. One wonders how Easyjet view Norwegian now against an IAG controlled into.

Better Easyjet gets the planes and presence on routes than a competitor. They can make it work if necessary- Easyjet has operated a mixed fleet before when they were tranisitioning from the 737 to the A320 family.

I suspect it would be like Air Berlin though where Easyjet teams up with another player (ie IAG). IAG gets the long haul routes and planes (they probably have less interest in short haul network), U2 gets the short haul routes and planes.

LupineChemist · Wed May 16, 2018 11:03 am

As far as competing against AY, I speculated that when this happened that part of this was a shot across the bow at the Finnish government. IAG would love to buy AY but the government of Finland isn't selling and the JV is only to Japan so it very well could be a signal that Finnair will have to compete if they aren't willing to go to market.

YIMBY · Wed May 16, 2018 1:56 pm

LupineChemist wrote:
As far as competing against AY, I speculated that when this happened that part of this was a shot across the bow at the Finnish government. IAG would love to buy AY but the government of Finland isn't selling and the JV is only to Japan so it very well could be a signal that Finnair will have to compete if they aren't willing to go to market.

You may be right.

If the government does not give up (When will the next elections take place?) and IAG breaks with Finnair, what would JL, LA, AA and QR think? Would they increase of decrease co-operation with AY? Do they rely on AY on any European connections? Could IAG just force AY out of any JV and let the others accept it?

LupineChemist · Wed May 16, 2018 2:26 pm

It's a revenue sharing JV, not cost sharing. So by choking their revenue elsewhere in Asia and letting them continue on the Japan train, they'd not harm themselves in the process while still harming overall revenues of the company forcing the government into an uncomfortable position.

I still think IAG would rather have AY than Norwegian. It's really only IAG (with IB and BA) AY and JL involved at this point. I can't imagine QR gets a lot of Scandinavia-East Asia traffic as that's quite the detour so they might be all aboard a plan to get it under a company where they have some ownership.

I do see some space where both Norwegian and Finnair could fit into IAG but the strategies are completely different if AY stays out.

Blerg · Thu May 17, 2018 4:51 am

Isn't there a clause in the Finnish-Russian ASA agreement that Finnair has to remain state owned or that overfly rights only apply to government owned airlines?

Mortyman · Fri May 18, 2018 12:04 pm

Norwegian plunges on IAG signal

The Norwegian share plunges eight percent on statements by IAG chief Willie Walsh that he does not want to make a hostile purchase of Norwegian.

TDN Finans quotes Reuters that IAG will not conduct a hostile acquisition of Norwegian Air Shuttle, nor expect anything to happen regarding any agreement in the coming weeks or months.

It is CEO Willie Walsh of IAG who commented during an aviation conference on Friday.

"This is not an agreement I have to make. We have expressed an interest. If they do not want to be purchased by IAG, okay," says Walsh.

He adds, according to TDN Finans, that he "will not do anything hostile" and that this is "not his style".

Walsh says that if IAG does something it will be done responsibly and with the required announcements but he will not expect to do anything in the next few weeks or months.

https://investor.dn.no/?&_ga=2.26439489 ... ekte/28751

YIMBY · Fri May 18, 2018 7:47 pm

Blerg wrote:
Isn't there a clause in the Finnish-Russian ASA agreement that Finnair has to remain state owned or that overfly rights only apply to government owned airlines?

No, but all classic bilaterals with Russia apply to airlines owned more than 50 % by respective nationals (or government). Some of the more modern ones may extend nationals to all EU, but I guess most bilaterals keep on the narrow nationality, particularly Finnish. Scandinavian countries include one Scandinavian airline. Both governments accept and assign the respective airline, one from each side, unless otherwise explicitly agreed

a350lover · Sat May 19, 2018 11:20 am

What can be the consequences of this step back regarding the interest of IAG?

Norwegian was not apparently on the "radar" of any other big groups, not Lufthansa, not certainly AF&KLM. What can we expect then? They just to keep up with its independent strategy. Fair enough, but I have the feeling that after IAG adding a piece of the cake, all Norwegian's weaknesses are if anything even more delicate.

I suspect some remarkable contingency plan is to come in soon.

jfk777 · Sat May 19, 2018 12:06 pm

3AWM wrote:
The 2 other Oneworld members in Europe are BA and Iberia, both represent much bigger markets than Finnair's domestic market. London is also light on Asia routes for the size of the market. My guess is BA and Iberia sell a lot more seats for Finnair than Finnair sell for IAG. IAG will also have that data. I would say that IAG could forecast with an element of certainty how many seats they could shift to a venture through Norwegian just my moving those BA and IB codes out of the existing JV and putting them on an equivalent flight operated by Norwegian.

Whichever way you look at it if IAG buys Norwegian they will be competing with Finnair in the Scandinavian region.

Finnair's only regular yearly flight to North America is to JFK, they fly seasonly to Miami and Chicago. Finnair huge network is of course to Asia, they probably cover Asia better then any European airline. Norwegian has very limited operations to Bangkok and a LGW to Singapore which hardly compete with Finnair.

IAG could purchase both but would probably only buy one. IAG would be wise to buy a bigger Asian franchise and buy assets from Norwegian since its going to be selling either planes or slots or both. Whatever Willie buys the problems he has are good one to have.

Waterbomber · Sat May 19, 2018 2:37 pm

What stops IAG from going for a unilateral take-over through the stock market?
Any regulatory limitations?

Market cap permitting, they should be able to buy up less than half the airline and convince one of the minority shareholders to vote with them at board meetings.

SuperTwin · Sat May 19, 2018 2:44 pm

Mortyman wrote:
Norwegian plunges on IAG signal

The Norwegian share plunges eight percent on statements by IAG chief Willie Walsh that he does not want to make a hostile purchase of Norwegian.

TDN Finans quotes Reuters that IAG will not conduct a hostile acquisition of Norwegian Air Shuttle, nor expect anything to happen regarding any agreement in the coming weeks or months.

It is CEO Willie Walsh of IAG who commented during an aviation conference on Friday.

"This is not an agreement I have to make. We have expressed an interest. If they do not want to be purchased by IAG, okay," says Walsh.

He adds, according to TDN Finans, that he "will not do anything hostile" and that this is "not his style".

Walsh says that if IAG does something it will be done responsibly and with the required announcements but he will not expect to do anything in the next few weeks or months.

https://investor.dn.no/?&_ga=2.26439489 ... ekte/28751

Why rush? It will be cheaper and more desperate in 6-9 months time.

Wait for the ‘sale’.

Aesma · Sat May 19, 2018 3:10 pm

jfk777 wrote:
Norwegian is worth more as a fleet for its assets then the brand and operation they currently have. What airline currently has a huge fleet of 787 ready to be reconfigured and repainted ? Rip out the front economy seats. move the Premium Economy seats back and put in some J class seats in ready to go for full service airline.

If that was true, then wouldn't it make more sense to wait for Norwegian to fail and buy the assets cheaper ?

Also, if airlines don't have the capacity they need, it's their own fault for not ordering new aircraft years ago. It doesn't show great vision from their management...

pompos · Sat May 19, 2018 3:48 pm

Aesma wrote:
jfk777 wrote:
Norwegian is worth more as a fleet for its assets then the brand and operation they currently have. What airline currently has a huge fleet of 787 ready to be reconfigured and repainted ? Rip out the front economy seats. move the Premium Economy seats back and put in some J class seats in ready to go for full service airline.

If that was true, then wouldn't it make more sense to wait for Norwegian to fail and buy the assets cheaper ?

At that point you have to compete with everyone else who might wants to pick a few cheap aircraft. Meaning the prices for the aircraft will be higher and/or you'll only get a fraction. Also you ideally want as much predictability as possible. E.g. Plan when which aircraft can be transferred to your fleet.

Aesma wrote:
Also, if airlines don't have the capacity they need, it's their own fault for not ordering new aircraft years ago. It doesn't show great vision from their management...

Yeah... it's their fault but a very understandable position. It's difficult to predict the feature. Hence, most will play it safe.

LupineChemist · Mon May 21, 2018 9:28 am

And....yet another round.

http://www.proactiveinvestors.co.uk/com ... 97361.html

masseybrown · Mon May 21, 2018 1:02 pm

Interesting article in the FT(US edition) today about the different approaches Ryan and IAG are taking to Brexit. MOL seems to think the IAG strategists, buying a stake and courting Norwegian, are being much too optimistic that the airlines will sail through unscathed.

okobjorn · Tue May 22, 2018 7:12 am

LupineChemist wrote:
And....yet another round.

http://www.proactiveinvestors.co.uk/com ... 97361.html

The apparently new bid is 330 NOK / share - 10% higher than reported by the link above - according to Danish media who cites Spanish media Expansion

LuxuryTravelled · Tue May 22, 2018 7:44 am

Given that Level isn't really an airline, just a 'virtual airline' operating off the back of Iberia with no CEO - there is little commitment for IAG. If they wanted to pull it apart, it would be very easy for them to do so under different branding (Norwegian). The whole venture for them is very low risk.

Having taken the Monarch slots at Gatwick, BA doesn't have a clear direction on what the base should become and acquiring Norwegian will only add to that conundrum.

LHRFlyer · Tue May 22, 2018 8:22 am

I may be proved wrong but I wouldn’t put too much weight on reports sourced from Expansion. It has been wrong about IAG many times in the past.

a350lover · Tue May 22, 2018 8:47 am

Norwegian says nothing about this new bid.

Does silence mean they are maybe considering their options?

LHRFlyer · Tue May 22, 2018 8:56 am

a350lover wrote:
Norwegian says nothing about this new bid.

Does silence mean they are maybe considering their options?

It doesn’t need to unless IAG makes a formal takeover bid, which it hasn’t as IAG would announce it to the stock exchange if it had.

787Driver · Tue May 22, 2018 10:20 am

I really hope Norwegian will stay independent.

Kiwirob · Tue May 22, 2018 10:28 am

787Driver wrote:
I really hope Norwegian will stay independent.

I don't they are a horrible airline.

787Driver · Tue May 22, 2018 11:07 am

Kiwirob wrote:
787Driver wrote:
I really hope Norwegian will stay independent.

I don't they are a horrible airline.

But good for the competition. And by the way, anything related to Norway in your opinion is “horrible” as demonstrated many times on this forum over the years, so I’d take your comment with a huge grain of salt.

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