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View Full Version : IAG Buying Norwegian?


NEDude
04-12-2018, 02:35 AM
IAG, the parent company of British Airways, Iberia, Aer Lingus, Vueling, and Level, has purchased a minority share and have announced they are considering making an offer for Norwegian.

https://www.flightglobal.com/news/articles/iag-floats-possible-norwegian-takeover-447639/


Jetpowered
04-12-2018, 04:10 AM
British Airways owner International Airlines Group (IAG) has confirmed that it is exploring a potential acquisition of low-cost carrier Norwegian Air Shuttle.
Shares in Norwegian jumped by as much as 26% on news of a possible tie-up before trading was suspended on the Oslo Stock Exchange.
According to reports, IAG wants to boost its market share amid increasing competition from low-cost carriers.

Norwegian declined to comment.

IAG said it had bought a minority stake in the airline with a view to opening talks about a deal.

"The minority investment is intended to establish a position from which to initiate discussions with Norwegian, including the possibility of a full offer for Norwegian," IAG said.
However, it said no discussions have taken place and it has not decided whether to make an offer.

trip
04-12-2018, 08:13 AM
What's next Oneworld alliance?


Grumble
04-12-2018, 08:00 PM
What's next Oneworld alliance?

Leveraged buy out, run it into the ground, sell off the pieces.

lgaflyer
04-12-2018, 10:30 PM
Leveraged buy out, run it into the ground, sell off the pieces.

Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

captjns
04-13-2018, 04:37 AM
Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

Carl Icahn. Ask the long time employees of TWA. I’ll bet they’ll burn up the keyboards responding to your query. True... Carl did not own an airline, but just the same... he purchased an airline, and ran it into the ground.

You may not be old enough to remember Frank Lorenzo, and what he did to Eastern Airlines.

US carriers are subtle as to what they are doing to shave expenses and increase profit margins in the name of code sharing which in fact is outsourcing de facto.

sailingfun
04-13-2018, 04:50 AM
Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

Google Carl Icahn and TWA. Then google Frank Lorenzo and Eastern Airlines!

GogglesPisano
04-13-2018, 06:34 AM
Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

This happens all the time. Itís Bain Capitalís business plan. Buy with debt loaded on the victim company. Complain that costs are now too high and cut costs. Sell off the pieces for a profit.

I donít think airlines are in this business, however. And Iím not sure you can cost cut at a ULCC.

Grumble
04-13-2018, 07:34 AM
Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

Most recently, Toys R Us.

MasterOfPuppets
04-13-2018, 07:52 AM
Can you give me a past example of when Company A bought Company B and then "ran it into the ground and sold off the pieces"?

You need a history lesson.......This industry is filled with what you describe above.

MasterOfPuppets
04-13-2018, 07:53 AM
I hope all the contract employees are shown the door immediately.

captjns
04-13-2018, 07:59 AM
I hope all the contract employees are shown the door immediately.

They are... but not immediately... this is... the door to Ops... the door to the ramp... Main Entry door to the jet... the cockpit door... the door to the biffy... That help MOP?

MasterOfPuppets
04-13-2018, 08:10 AM
They are... but not immediately... this is... the door to Ops... the door to the ramp... Main Entry door to the jet... the cockpit door... the door to the biffy... That help MOP?

Makes sense anyone who thinks working for NAI is a good idea probably needs to be shown what a door looks like and how they operate.

T28driver
04-13-2018, 11:01 AM
My bet is that IAG is looking at this from a couple of angles:

1) allows them to get their hands on the actual financials if Norwegian decides to play nice, which depending on their debt covenants is a possibility.

2) allows them to secure 787’s immediately, which depending on the financials may be an attractive proposal. If the financials are truly terrifying, they may still be able to get the 787’s by working new finance agreements on them.

3) would give them additional AOC’s in Norway, Ireland, the UK, and Argentina.

Number three is my bet, and it’s bad news for everyone on this side of the pond. IAG has the capital to actually make a sustained run at the flag of convenience model, and they may feel behind the curve already based on Lufthansa’s overall holdings.

TL/DR: I hope any takeover is blocked and Norwegian is allowed to wither on the vine.

lgaflyer
04-13-2018, 11:01 AM
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.

T28driver
04-13-2018, 11:07 AM
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.

This.

Regarding IAGís structure, from Wikipedia:

Qatar Airways is a minority shareholder, and held 20.01% of the shares on 29 July 2016.

Divisions, subsidiaries and franchises:
The structure of the main operating companies is:

Republic of Ireland: Aer Lingus
Republic of Ireland: Aer Lingus Regional (franchise)
United Kingdom: British Airways
United Kingdom: BA CityFlyer
France: OpenSkies
South Africa: Comair (18% stake)
Denmark: SUN-AIR (franchise)
Spain/United Kingdom: IAG Cargo (merger between Iberia Cargo and British Airways World Cargo)
Spain: Iberia
Spain: Air Nostrum (franchise, trading as Iberia Regional)
Spain: Iberia Express
Spain: Level
Spain: Vueling
Avios Group (operates the IAG frequent-flyer programme)

Varsity
04-13-2018, 11:09 AM
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.

IAG bought BMI in April of 2012, transferred the entire fleet to BA and the airline was dead by October.

If they played their cards right, IAG could probably buy Norwegian, let it go bankrupt and restructure the debt - Getting a killer deal on 787's for BA.

captjns
04-13-2018, 11:36 AM
Makes sense anyone who thinks working for NAI is a good idea probably needs to be shown what a door looks like and how they operate.

What makes your pride of the skies so wonerful to work for? From what Ive read on the UAL section, your airline doesnít seem to be beer and skittles.

Now, MOP, in your own words, no rhetoric mind you... why do you think NAI, other than low pay, isnít such a great place to work for.
Again, you need to share with us your own experiences, and not form the 7-11 cashierís working experience with them.

How did you find the training at NAI?
How did you find the condition of the aircraft when you flew for NAI?
Layover hotels provided by NAI?

Please enlighten this forum.

busbusbaby
04-13-2018, 11:53 AM
Google Carl Icahn and TWA. Then google Frank Lorenzo and Eastern Airlines!
TWO that will never own an airline again

T28driver
04-13-2018, 11:57 AM
What makes your pride of the skies so wonerful to work for? From what Ive read on the UAL section, your airline doesnít seem to be beer and skittles.

Now, MOP, in your own words, no rhetoric mind you... why do you think NAI, other than low pay, isnít such a great place to work for.
Again, you need to share with us your own experiences, and not form the 7-11 cashierís working experience with them.

How did you find the training at NAI?
How did you find the condition of the aircraft when you flew for NAI?
Layover hotels provided by NAI?

Please enlighten this forum.

Can I play?

Also, for clarity, are we just talking about NAI? Or can we talk about NAS, NAL, NAA, and NAU too in the conglomerate sense? Asking because some people like to play that game. Letís just call it ďNorwegianĒ. Deal? Deal.

I donít care about the training. European knowledge and medical standards are generally far more rigorous than the ones we deal with in the US.

I donít care about the layover hotels.

The aircraft are probably beautiful, since most of them are brand new.

If you read my post history, I donít believe I have ever discussed the safety of the airline, the professionalism of the crews, or the maintenance.

That isnít what this is about. Itís about protecting the jobs and standard of living for pilots here in the United States. Norwegian playing by the rules. I want those rules to change. Preferably in a way that excludes them, and the other carriers that will follow, from the US market.

MasterOfPuppets
04-13-2018, 05:32 PM
What makes your pride of the skies so wonerful to work for? From what Ive read on the UAL section, your airline doesnít seem to be beer and skittles.

Now, MOP, in your own words, no rhetoric mind you... why do you think NAI, other than low pay, isnít such a great place to work for.
Again, you need to share with us your own experiences, and not form the 7-11 cashierís working experience with them.

How did you find the training at NAI?
How did you find the condition of the aircraft when you flew for NAI?
Layover hotels provided by NAI?

Please enlighten this forum.

1. Im sure the training at NAI is fine....its European so its probably overly complicated.

2. I will never step foot on a NAI aircraft so I will never be able to answer that question.

3. I don't care how good the layovers are.....who would work for an airline based on the hotels? :rolleyes:

FLAG OF CONVENIENCE.....Im not interested in my career turning into the shipping industry.

captjns
04-13-2018, 06:09 PM
Can I play?

Also, for clarity, are we just talking about NAI? Or can we talk about NAS, NAL, NAA, and NAU too in the conglomerate sense? Asking because some people like to play that game. Letís just call it ďNorwegianĒ. Deal? Deal.

I donít care about the training. European knowledge and medical standards are generally far more rigorous than the ones we deal with in the US.

I donít care about the layover hotels.

The aircraft are probably beautiful, since most of them are brand new.

If you read my post history, I donít believe I have ever discussed the safety of the airline, the professionalism of the crews, or the maintenance.

That isnít what this is about. Itís about protecting the jobs and standard of living for pilots here in the United States. Norwegian playing by the rules. I want those rules to change. Preferably in a way that excludes them, and the other carriers that will follow, from the US market.

Not unless you are a designated agent, and or representative of MOP.

However, you miss the basic point that your own carrier, provided, you are employed by AA, UAL, or DAL, that they are probably committing greater harm to your lively hood with outsourcing your work in the name of code sharing.

If I may ask T28... how long have you been with a your current carrier?

T28driver
04-13-2018, 06:10 PM
FLAG OF CONVENIENCE.....Im not interested in my career turning into the shipping industry.

This. Nothing but this.

And, please, all of the Norwegian defenders, stop with the “everything they are doing is legal” argument. Flags of convenience are legal in the shipping world. They shouldn’t be. The way that Norwegian is operating is legal...right now. Laws and treaties can change. There are far more people employed by the US airline industry than were by the US shipping industry even at its height.

Votes matter these days.

T28driver
04-13-2018, 06:20 PM
Not unless you are a designated agent, and or representative of MOP.

However, you miss the basic point that your own carrier, provided, you are employed by AA, UAL, or DAL, that they are probably committing greater harm to your lively hood with outsourcing your work in the name of code sharing.



captjns, I believe I covered joint ventures in a previous post to you. They are an additional threat. Flags of Convenience are a threat as well. Iím equal opportunity when it comes to threats to my profession. This thread is about Norwegian. Just because other things are causing ďgreater harmĒ doesnít mean the the Flag of Convenience model gets a pass. Itís a solid deflection attempt, and I salute you for it.

Unlike most, I have firsthand knowledge of the shipping industry and I have been directly affected by flags of convenience. So I beat the drum and try to rally the troops, because Master of Puppets is right. The flag of convenience model in aviation must be eliminated, preferably through legislative means.

sailingfun
04-14-2018, 05:21 AM
Most recently, Toys R Us.

Exactly, buy Toys R Us, load it with debt as you suck out all the cash. Shut it down, move on to next company. Most Amazing thing is Toys R US was profitable at the end. They had however been sucked dry.

NEDude
04-26-2018, 08:01 AM
Update-

Norwegian reveals that they have attracted interest from other parties after the IAG announcement. BjÝrn Kjos has also softened his resistance to a sale, now saying that everything is for sale if the price is right.

https://www.bloomberg.com/news/articles/2018-04-26/norwegian-air-softens-takeover-stance-hints-at-bids-beyond-iag

Andy
04-26-2018, 09:31 AM
Update-

Norwegian reveals that they have attracted interest from other parties after the IAG announcement. BjÝrn Kjos has also softened his resistance to a sale, now saying that everything is for sale if the price is right.

https://www.bloomberg.com/news/articles/2018-04-26/norwegian-air-softens-takeover-stance-hints-at-bids-beyond-iag

After Norwegian's quarterly report and restated 2017 financials, I'm sure everything's for sale because the cash burn rate is stupefying. They're papering over the cash burn rate by selling everything including the office toilet paper and light bulbs. It would be cheaper to shut down the operation and start a huge bonfire using $100 bills as fuel.

Another take on the 'takeover' prospects: https://www.washingtonpost.com/business/norwegians-crafty-pilot-finds-a-whole-new-way-to-fly-gadfly/2018/04/26/b985e03e-4941-11e8-8082-105a446d19b8_story.html?utm_term=.b1985c2a506c

Sniper66
04-26-2018, 11:44 PM
After Norwegian's quarterly report and restated 2017 financials, I'm sure everything's for sale because the cash burn rate is stupefying. They're papering over the cash burn rate by selling everything including the office toilet paper and light bulbs. It would be cheaper to shut down the operation and start a huge bonfire using $100 bills as fuel.

Another take on the 'takeover' prospects: https://www.washingtonpost.com/business/norwegians-crafty-pilot-finds-a-whole-new-way-to-fly-gadfly/2018/04/26/b985e03e-4941-11e8-8082-105a446d19b8_story.html?utm_term=.b1985c2a506c









Latest news they canít take all deliveries and spinning off a leasing company

Thatís the nail in their coffin

Laker air all over again
Freddy talk to them