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[smithys2019] 11/3/2020 19:47

Interesting article with some analysis.

[m1k3y1] 11/3/2020 19:25

Smithy...it's only 12 hrs or so LOl.

I think you'll be right about Norwegian and IAG maybe looking for the best bits but I doubt it will be at the same level as offered originally.

There won't be large numbers of airlines who have the cash available, although borrowing will be cheap.

[smithys2019] 11/3/2020 19:19

Kuwait - one flight a day I believe. You won’t be driving from AUH, BAH maybe!

India has closed borders as well today I believe.

I reckon Norwegians assets are in the crosshairs once the recovery starts. If you have the cash to splash...

[hamhamham1] 11/3/2020 19:03

Dow looking like closing in a bear market.

[m1k3y1] 11/3/2020 18:19

You can still drive though !
AUH, DBX , etc

[hamhamham1] 11/3/2020 18:17

Jeez. They have 500 flights a day going through there. (Kuwait)

[nw99] 11/3/2020 18:16

Very much so

[m1k3y1] 11/3/2020 18:07

ham.....I think he will be waiting to pick up the pieces.

[m1k3y1] 11/3/2020 18:01

Starting Friday, March 13, 2020, Kuwait International Airport will close for passenger service indefinitely,

[hamhamham1] 11/3/2020 17:58

Walsh is probably glad they didn't accept.

[m1k3y1] 11/3/2020 17:55

Norwegian should have accepted Walsh's offer. They might be regretting they didn't now.

[m1k3y1] 11/3/2020 17:44

Don't they just file for Chapter 11 in America . Does Bankruptcy even exist there ???

[loganair] 11/3/2020 17:38

Fasten Your Belts, American Airlines Investors: You’re Flying Into Another Bankruptcy:

As coronavirus reduces travel, American Airlines is in a tough spot owing to its high levels of debt. Its next destination could be bankruptcy court.

American Airlines Group Inc (NASDAQ:AAL), with its high debt and poor ratings among flyers, now faces the prospect of repeating its 2011 experience – filing for bankruptcy.

Already, AAL bonds are near distressed levels. This elevates bond investors’ worries over the carrier’s ability to repay debt. Last week some of the firm’s bonds were yielding over 12%. At time of low or negative interest rates, a double-digit yield suggests high levels of default.

Labor disputes at American Airlines still persist:

On average, labor costs comprise around 35% of the total operating expenses of an airline. During the 2011 bankruptcy, labor issues were another factor that forced American Airlines into bankruptcy as unions constrained efforts to cut costs.

With a larger unionized workforce than say at Delta, where flight attendants aren’t unionized, reducing capacity in a downturn won’t be so easy. At a time when cost-cutting is absolutely necessary, American will find it hard to adjust.

American Airlines trailing competitors:

At a time when airlines will be competing for a limited number of passengers, American lacks a compelling proposition among flyers. Among the nine major U.S. carriers, American Airlines was rated the worst airline in 2019. It ranks at the bottom on canceled flights, mishandled baggage, involuntary bumping and tarmac delays.

The downturn in flight bookings due to coronavirus is coming at a time when American is still reeling from the 737 Max debacle. American grounded 24 737 Max jets and had 76 more on order.

Sadly, even as the situation worsens due to reduced travel, executives at American Airlines are slow to take badly needed cost-cutting measures. Top executives at Southwest and United, airlines which have better balance sheets than American, have already cut their salaries as a first step. American’s senior management may delay this but the journey to bankruptcy court has already started.

[loganair] 11/3/2020 17:31

Crew members from the loss making low-cost airline Norwegian Air Shuttle were refused access to their rooms at an airport hotel until advance payment was received from the company.

In a letter to airline the hotel said: “We have requested your company, Norwegian Airlines, to supply us with advance payment for your accommodation.”;

Norwegian’s shares have slumped by 74% since the start of the coronavirus in China and were 15% lower on Wednesday afternoon, the lowest level since 2005.

[m1k3y1] 11/3/2020 17:08

nothing sane about people losing money, jobs, property, savings, pensions etc with the scenario you are painting.

[careful] 11/3/2020 16:58

'She's gonna blow Captain'
As Scotty used to say.

Wonder if we are in for a 2003/2008 crash to about FTSE100 3500.

Amazed how some people think that the powers that be can cure the markets.
A re run of past crashes.
That classic book by Professor J.K. Galbriath 'the crash of 1929'
Everyone thought that powerful men in government or back offices can fix these things.

Everyone accepts the crazy wealth creation on the way up, that we do not work for, but think it in insane when it goes back down.

More likely the crash is a return to sanity.

[m1k3y1] 11/3/2020 16:55

Officially declared a Pandemic, which won't make a jot of difference to the virus !

[m1k3y1] 11/3/2020 16:54

Monty .......if they are long , why ouch ?.......they are long after all.

[montyhedge] 11/3/2020 16:51

Meant to read, hedge fund massive long positions in airlines, reported FT few days ago. Wonder if they still have positions open.

[montyhedge] 11/3/2020 16:47

There is one hedged with a massive long position in airlines, reported in FT, ouch.

[hamhamham1] 11/3/2020 16:31

I guess we will hear if trump and EU gonna chuck money at the economy soon.
But I still think that should be done to get out of recession, not to avoid it, else you really have nothing to use to get out of recession.

WHO just called it a pandemic.

[hamhamham1] 11/3/2020 16:26

That's a jump...

[1 nhs] 11/3/2020 16:25

0 0
My theory is there are a fair few institutional investors supporting this around 400, for long term ROI self interest reasons. Pension funds et al. It’s proving a very very resistant level. I honestly thought the latest stats were going to push it down but it’s rock solid above 390/400


The instructions are totally wrong footed, they have been far to slow to sell

We should be nearer 20P RIGHT NOW.

[smithys2019] 11/3/2020 16:23

My theory is there are a fair few institutional investors supporting this around 400, for long term ROI self interest reasons. Pension funds et al. It’s proving a very very resistant level. I honestly thought the latest stats were going to push it down but it’s rock solid above 390/400.