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[m1k3y1] 27/4/2020 17:23

Jets from bust airlines set to flood the aviation market

[loganair] 27/4/2020 17:19

Hibernation phase - The company believes the difficult situation facing the aviation industry will persist for a long time. As such, Norwegian plans a "hibernation phase" until the Spring of 2021. During this time, the company will focus on "protecting the cash balance."

[loganair] 27/4/2020 17:15

Norwegian will keep majority of its operations suspended until April 2021.

Most notably, the airline doesn’t expect to resume its European short-haul and long-haul operations until April 2021 at the earliest.

While 95% of the airline’s aircraft are currently grounded, the carrier is pleading with investors for a lifeline before it runs out of cash in mid-May.

Until then, both short-haul and long-haul sets of aircraft remain grounded and subject to travel restrictions. For long-haul flights, when the airline is set to gradually ramp up routes as of April 2021, it will focus on its most profitable “top tier” cities — such as London (LGW), New York (JFK) and Los Angeles (LAX).

Currently, Norwegian is using seven aircraft to operate on short-haul Nordic routes while it focuses on minimising cash burn.

The announcement of its delayed operation resumption came as part of the carrier’s proposed rescue plan, which sees the airline running out of cash by mid-May. In the airline’s attempt to secure a loan from the Norwegian government worth 2.7 billion crowns ($261 million), its planned debt-to-equity swap would see the majority ownership swap to investors and bondholders, with current shareholders left just with 5.2%.

It’s “critical to get access to the State Aid Package by mid May before the company runs out of cash”, the airline said in its presentation to investors.

[loganair] 27/4/2020 17:07

Virgin Atlantic Airways has been told by Treasury officials it has to find around £500m of cash from private investors, including Sir Richard Branson, before the Government will consider the billionaire's pleas to access a similar amount via an emergency loan.

[loganair] 27/4/2020 17:00

European plane maker Airbus has told its 135,000 employees to brace for potentially deeper job cuts amid the Covid-19 crisis, as the company’s survival is at stake without immediate action.

CEO Guillaume Faury said in a letter to staff the company is “bleeding cash at an unprecedented speed” and that the recent drop of a third or more in production rates does not reflect the worst-case scenario and would be kept under review.

Airbus is in active discussions with European governments about tapping schemes to assist struggling industries (including state-guaranteed loans), the sources said. The company has already expanded commercial credit lines with banks.

The aerospace giant said this month it would reduce narrow-body jet production by a third to 40 jets a month. It also issued targets for wide-body jets, with cuts of up to 42 percent compared with previously published rates.

“Unfortunately, the aviation industry will emerge into this new world very much weaker and more vulnerable than we went into it,” Faury wrote.

[npp62] 27/4/2020 14:36

Any of you guys looked at MGGT?

[loganair] 27/4/2020 11:00

Virgin Atlantic is reported to be seeking new shareholders this week as the pandemic crisis causes airlines around the world to seek new sources of funding.

The FT quotes a Virgin Group spokesperson saying that the Group is not looking to sell the airline, but rather is “working with Houlihan Lokey to approach private investors about the investment opportunity”.

[smithys2019] 27/4/2020 10:59

U.K. debt management office is going to run out of investors. Confidence in the U.K. is evaporating.

[jailbird] 27/4/2020 09:54

Government will have to extend furlough , otherwise job losses and defaults will happen Will insurance cover debt payments ?That is if you have it of course

[smithys2019] 27/4/2020 09:29

Sentiment will change the minute people get their first pay checks through the door. For the 60% who live month to month, an awakening that state support will one day dry up and they will have no job to do will convince them that this lockdown is going to be terminal for their future. Self preservation will kick in the minute they are worried about paying for finance, mortgage and food on the table. The general consensus will be to put the vulnerable at increased risk if it saves the country.

[jailbird] 27/4/2020 07:24

If Boris bring these measures in , who will travel when you know the first 2 weeks you will be quarantined Until we start testing and tracing , things are not going I get better The problem is these tests are not 100% reliable .The pregnancy test has a high accuracy rate.

[jailbird] 27/4/2020 07:20

I would get to excited about coming out of lockdown either .. we will have many months to ride this out .There will 2nd/3rd waves and I fear flu season is not going to be pretty Forget about flying starting up in a big way . This next challenge is how to stop the importing of the virus .Up to now you can travel to UK and not be checked . The challenge is ensuring the import of ppl are not going to continue to be spreaders Boris is back today and to be working with on a Singapore-style plan for the passengers arriving at UK sea and airports to be quarantined for 14 days.

[m1k3y1] 26/4/2020 23:37

Maybe not......

[milliecusto] 26/4/2020 23:06

May be a rights issue for Iag, sub 200p perhaps

[qantas] 26/4/2020 20:18

Jttps://www.thisismoney.co.uk/money/markets/article-8257015/EasyJet-course-rescue-cash-battle-Stelios.html

Please do your own research as always

[m1k3y1] 26/4/2020 16:13

I am waiting for the announcement of the Lazarus like reappearance of BoJo, who will no doubt return like the conquering hero, saying how marvellous everything has been, with his cabinet following his strategy from his 'near' death bed and that we can now move towards resuming normal life again in the near future.

[m1k3y1] 26/4/2020 16:09

UK GOV will be under pressure to ease the lockdown as soon as other countries do the same, which is not far off .

Business and the population will also decide enough is enough and the danger of contracting the virus will become just another acceptable risk .

IF a vaccine is due in say 12 months, then again , some people will view the 12 month risk as being acceptable , as opposed to continuous lockdown, which is damaging to the economy, people's jobs and business in general.

UK GOV can't continue this position ad infinitum , particularly when the statistics and figures they continually produce are neither reliable or comparable country by country.

[m1k3y1] 26/4/2020 16:05

Monty .....LOL 3years ....why not make it 5 , or even 10 .

[montyhedge] 26/4/2020 15:55

Must admit can't see the attraction for IAG, there won't be a dividend for 3 years in my view. It will never be back to normal until a vaccine.

[m1k3y1] 26/4/2020 15:20

The Telegraph
Sir Richard Branson is seeking a buyer for Virgin Atlantic and has set an end-of-May deadline to save the airline from collapse after a taxpayer bailout proved beyond his reach.

[watfordhornet] 26/4/2020 11:13

I will be Monty. Can promise you that. Once allowed I will be off - got two weeks booked in Spain in August and although don't think will be able to if allowed I would be over there

[toon1966] 26/4/2020 11:10

Wrong again Monty...

[montyhedge] 26/4/2020 10:06

No one surely in their right mind will fly until a vaccine.

[sr2day] 26/4/2020 09:06

Branson was proposing bookings for space travel at one stage and now he is about to come down to earth.

[laurence llewelyn binliner] 26/4/2020 08:33

Airlines are like vultures, waiting, hoping, and often helping the demise of their competitors along if they can to scavenge on the left overs, looks like it is payback time for Mr B...!