IAG Buying Norwegian?
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/ar...keover-447639/ |
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. |
What's next Oneworld alliance?
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Originally Posted by trip
(Post 2570709)
What's next Oneworld alliance?
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Originally Posted by Grumble
(Post 2571212)
Leveraged buy out, run it into the ground, sell off the pieces.
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Originally Posted by lgaflyer
(Post 2571258)
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 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. |
Originally Posted by lgaflyer
(Post 2571258)
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"?
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Originally Posted by lgaflyer
(Post 2571258)
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"?
I don’t think airlines are in this business, however. And I’m not sure you can cost cut at a ULCC. |
Originally Posted by lgaflyer
(Post 2571258)
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"?
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Originally Posted by lgaflyer
(Post 2571258)
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"?
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I hope all the contract employees are shown the door immediately.
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Originally Posted by MasterOfPuppets
(Post 2571452)
I hope all the contract employees are shown the door immediately.
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Originally Posted by captjns
(Post 2571456)
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?
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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. |
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.
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Originally Posted by lgaflyer
(Post 2571608)
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.
Regarding IAG’s 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) |
Originally Posted by lgaflyer
(Post 2571608)
IAG also owns Aer Lingus and others, I dont see Aer Lingus being run into the ground.
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. |
Originally Posted by MasterOfPuppets
(Post 2571466)
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.
Now, MOP, in your own words, no rhetoric mind you... why do you think NAI, other than low pay, isn’t such a great place to work for. Again, you need to share with us your own experiences, and not form the 7-11 cashier’s 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. |
Originally Posted by sailingfun
(Post 2571318)
Google Carl Icahn and TWA. Then google Frank Lorenzo and Eastern Airlines!
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Originally Posted by captjns
(Post 2571642)
What makes your pride of the skies so wonerful to work for? From what Ive read on the UAL section, your airline doesn’t 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, isn’t such a great place to work for. Again, you need to share with us your own experiences, and not form the 7-11 cashier’s 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. 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. Let’s just call it “Norwegian”. Deal? Deal. I don’t care about the training. European knowledge and medical standards are generally far more rigorous than the ones we deal with in the US. I don’t care about the layover hotels. The aircraft are probably beautiful, since most of them are brand new. If you read my post history, I don’t believe I have ever discussed the safety of the airline, the professionalism of the crews, or the maintenance. That isn’t what this is about. It’s 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. |
Originally Posted by captjns
(Post 2571642)
What makes your pride of the skies so wonerful to work for? From what Ive read on the UAL section, your airline doesn’t 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, isn’t such a great place to work for. Again, you need to share with us your own experiences, and not form the 7-11 cashier’s 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. 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. |
Originally Posted by T28driver
(Post 2571667)
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. Let’s just call it “Norwegian”. Deal? Deal. I don’t care about the training. European knowledge and medical standards are generally far more rigorous than the ones we deal with in the US. I don’t care about the layover hotels. The aircraft are probably beautiful, since most of them are brand new. If you read my post history, I don’t believe I have ever discussed the safety of the airline, the professionalism of the crews, or the maintenance. That isn’t what this is about. It’s 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. 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? |
Originally Posted by MasterOfPuppets
(Post 2571896)
FLAG OF CONVENIENCE.....Im not interested in my career turning into the shipping industry. 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. |
Originally Posted by captjns
(Post 2571913)
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. 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. |
Originally Posted by Grumble
(Post 2571433)
Most recently, Toys R Us.
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Update-
Norwegian reveals that they have attracted interest from other parties after the IAG announcement. Bjørn 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/artic...ids-beyond-iag |
Originally Posted by NEDude
(Post 2580607)
Update-
Norwegian reveals that they have attracted interest from other parties after the IAG announcement. Bjørn 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/artic...ids-beyond-iag Another take on the 'takeover' prospects: https://www.washingtonpost.com/busin...=.b1985c2a506c |
Originally Posted by Andy
(Post 2580673)
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/busin...=.b1985c2a506c Latest news they can’t take all deliveries and spinning off a leasing company That’s the nail in their coffin Laker air all over again Freddy talk to them |
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