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Arion640
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:13 pm

airbazar wrote:
Arion640 wrote:
Would the competition commission of the EU allow a full merger?

This will not go down too well with LH group/Air france-KLM.


What merger? IAG is NOT an airline. When are people going to understand that? I see zero competition issues here.


Sorry perhaps I should of used the word "acquisition" if it makes you feel better.

Clearly a competition case with the AA/BA/IB/AY JV and Level on the Transatlantic and possibly DY, all being controlled by parties colluding.
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Eirules
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:15 pm

If this comes to pass I doubt Norwegian (and whatever their different subsidiaries are) will continue to exist in the long term. The brands will be consumed within current IAG airlines and their current route network significantly scaled back.
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SCQ83
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:18 pm

I don't see this as a surprise. Reminds me of Vueling (before being purchased by IAG) and Clickair (Iberia) back in the day, when they just duplicated each other's routes for the sake of it, no matter how odd the route was.

The game of cat-and-mouse between IAG and Norwegian is unsustainable (e.g. BA opening LGW-OAK, LEVEL to compete with Norwegian, etc).

If this ever happens, it will be interesting to see what happens with Vueling. I wouldn't be surprised if they let the brand go. TBH Vueling has a horrible recognition even in Spain, and they somehow fail everywhere they try to expand (e.g. FCO) against easyJet or Ryanair. Also Vueling has aged quite badly as a brand.

JannEejit wrote:
What was the last massively debt ridden airline in competition that IAG purchased... BMI ? Look what happened to them, debranded, fleet absorbed into BA, part of the business (BMI-R) sold on. This is interesting news, but I can't help but see a similar fate for Norwegian. The Russians have a saying that might be appropriate here... "You remove the man, you remove the problem"


BMI was a competitor to BA with (obviously) much less brand name recognition.

But as I mentioned before, when Iberia bought Vueling, they kept the VY brand and scrapped Clickair (which was their low-cost brand). Norwegian has a much better brand awareness than Vueling, so the question would be whether they keep the two brands or scrap Vueling; or even they create a new brand (LEVEL?)
 
LupineChemist
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:26 pm

I agree the Norwegian brand will stay. Everyone seems to forget they do quite a bit of Spanish domestic flying and the short haul product is (rightly in my mind) very highly regarded.
 
mcdu
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:30 pm

Mortyman wrote:
It would surprise me if the ceo who is the majority owner and controls the company is interested in selling. Certainly not for the sum that is presented today.


It’s only worth what the market it willing to pay.
 
Aliqiout
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:47 pm

airbazar wrote:
Arion640 wrote:
Would the competition commission of the EU allow a full merger?

This will not go down too well with LH group/Air france-KLM.


What merger? IAG is NOT an airline. When are people going to understand that? I see zero competition issues here.

No it's not, but most of the discussion here is about competition, and when considering competition that distinction is meaningless.
 
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ro1960
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:50 pm

Arion640 wrote:
Would the competition commission of the EU allow a full merger?

This will not go down too well with LH group/Air france-KLM.


They're both currently bidding for AZ takeover...
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seahawk
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:52 pm

Just as LH was willing to give some of the AB left overs to IAG, it is very likely that IAG would be willing to turn over parts of Norwegian to the LH group. Both would cement their position in their core markets.
 
WingsOfLove
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:53 pm

As owner IAG likely eliminates Norwegian TATL from Ireland, moderates expansion at LGW / BCN and speeds it up at AMS / CDG / FCO. I could see a rival bid by AFKL.

https://www.wsj.com/articles/delta-keep ... 1523531800
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r2rho
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 12:54 pm

If it goes through I see some serious competition concerns mainly on North TATL, where DY is de facto the only serious threat to the TATL JV oligopoly. On Latam DY is not yet a big threat, but was going to be. Also issues on Spanish holiday routes but these would be likely picked up by others realtively easily.
I believe IAG is creating a mess for themselves. So, they have Vueling, a fairly successful and well-recognized brand for short-haul, and a new, unknown-to-most brand, Level, for long-haul. Now they will have a loss-making brand with AOCs and subsidiaries in who-knows-how-many countries to integrate into all of this, and try to make sense of it and sell it to the general public.

I agree. IAG has the tools (Vueling, Level, IB Express) to do this on their own. This only underscores that the likely only reason behind this move would be to eliminate a competitor, and get their hands on some planes.

Actually, closing down Level would be very easy as it is currently just a marketing brand for IB operated flights, without an AOC. It would be a matter of repainting the planes and redoing the website. The A330s could go back to IB operation. IAG would get a new Level out of the box, called Norwegian.
 
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DL747400
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:08 pm

travelhound wrote:
Norwegian, if sold will go for a premium. It has scale, a strong presence in key growth markets, a very competive cost base and a strong mix of good quality aircraft. It would take years for an airline to create an airline of this size


Funny how you left out the fact that Norwegian is not generating a profit.

My first thought would be let them run out of cash, cease operations and strand thousands of people to (further) ruin the brand reputation.

But this latest move by IAG may be the smarter move. Acquire Norwegian, dismantle their network, redeploy their fleet and all the while prevent a LCC / ULCC competitor from acquiring Norwegian to continue to expand their business model.
Last edited by DL747400 on Thu Apr 12, 2018 1:24 pm, edited 1 time in total.
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Kadish
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:11 pm

Any chance IAG will erase Norwegian n take routes, planes....in BA/IB...colours?
 
LupineChemist
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:17 pm

Kadish wrote:
Any chance IAG will erase Norwegian n take routes, planes....in BA/IB...colours?


Obviously this is all just crazy speculation on our part since this is just a takeover attempt at this point, that said I don't think the Norwegian brand would go away, it's a very highly regarded brand in the Nordic countries and the short haul product is probably one of the better ones in Europe (now that everyone is going to buy on board anyway).

I do think they would take away some of the capacity and have some of those planes end up either BA/IB/EI or any combination thereabouts. But probably only on long haul. Seems like too much trouble after having just gotten rid of all the 737s for short haul where they can stay with the well regarded Norwegian brand.

Also probably a little bit of defense to keep that many 737s from going to FR, as I'm sure MOL was waiting to be able to get a bunch in liquidation.
 
WingsOfLove
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:20 pm

DL747400 wrote:
Acquire Norwegian, dismantle their network, redeploy their fleet and all the while prevent a LCC / ULCC competitor from acquiring Norwegian to continue to expand their business model.


IAG is unlikely to dismantle Norwegian. More likely WW is going to use it to expand in markets he's been trying his luck with mixed results. AMS, CDG/ORY, FCO.
 
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Mortyman
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:21 pm

Comment to IAG’s acquisition of Norwegian shares

Press Release • Apr 12, 2018 11:50 BST

Comment to IAG’s acquisition of Norwegian shares

Norwegian has just been made aware that the International Airline Group (IAG) has acquired of 4.6 percent of the shares in Norwegian Air Shuttle ASA. Norwegian had no prior knowledge of this acquisition before it was reported by the media mid-morning Thursday. Norwegian has not been in any discussions or dialogue with IAG about the matter. Norwegian believes that interest from one of the largest international aviation groups demonstrates the sustainability and potential of our business model and global growth.

The company has no further comments at this stage.



https://media.norwegian.com/uk/?_ga=2.2 ... es-2475916
 
Strato2
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:35 pm

Can't see this flying with the EU authorities.
 
armchairceonr1
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:35 pm

Norwegian market cap was/is so low, that this is not big surprise but personally I thought that competitors just wait and sit when Norwegian fade away. IAG benefit maybe most of all Norwegian's competitors, if it fade away. It seems that IAG bosses didn't want to wait and see what happen to Norwegian. Bid could bee everything between 200-1000 NOK, if ever happend. Maybe it's still time to buy. :)
 
tphuang
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:36 pm

Hostile takeovers are not that uncommon when stock prices are down like in the case of dy. Their ceo may not want to sell but if the rest of the board sees it differently and can get paid handsomely, dy will get sold.
 
A388
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:42 pm

Guys, based on the press release of IAG themselves, it seems to me that IAG is saying that they are not having talks with Norwegian and that they don't plan to buy a minority stake in Norwegian. This is what their press release says:

"IAG confirms that no such discussions have taken place to date, that it has taken no decision to make an offer at this time and that there is no certainty that any such decision will be made. A further announcement will be made if appropriate."


So what's going on?


A388
 
seansasLCY
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:46 pm

A388 wrote:
Guys, based on the press release of IAG themselves, it seems to me that IAG is saying that they are not having talks with Norwegian and that they don't plan to buy a minority stake in Norwegian. This is what their press release says:

"IAG confirms that no such discussions have taken place to date, that it has taken no decision to make an offer at this time and that there is no certainty that any such decision will be made. A further announcement will be made if appropriate."


So what's going on?


A388


They already have bought a minority stake - 4.6% of Norwegian. They are considering whether to increase this further.
 
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adamblang
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:46 pm

The IAG release says "it is considering making an offer for Norwegian Air Shuttle ASA (Norwegian)."

I don't have a real good grasp of the corporate structure of Norwegian. Is Shuttle ASA the parent company or just one of the operating airlines flying under the Norwegian brand?
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evank516
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:47 pm

downdata wrote:
If in doubt, buy out your competition :)


See AS/VX ;)
 
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JannEejit
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:48 pm

A388 wrote:
Guys, based on the press release of IAG themselves, it seems to me that IAG is saying that they are not having talks with Norwegian and that they don't plan to buy a minority stake in Norwegian. This is what their press release says:

"IAG confirms that no such discussions have taken place to date, that it has taken no decision to make an offer at this time and that there is no certainty that any such decision will be made. A further announcement will be made if appropriate."


So what's going on?


A388


I think it's called smoke and mirrors... ;-)
 
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adamblang
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:48 pm

A388 wrote:
Guys, based on the press release of IAG themselves, it seems to me that IAG is saying that they are not having talks with Norwegian and that they don't plan to buy a minority stake in Norwegian.

Their release says IAG "has acquired a 4.61 per cent ownership position in the airline (minority investment)" and "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."
They bought a chunk of the company to force Norwegian management to talk to them.
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TheHunt3r
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:52 pm

IAG is probably just thinking out loud at this point, but i think DY should take it as a warning that if they continue on their current trajectory they'll eventually crash. I think if IAG is interested in eliminating TATL competitors a mutually beneficial deal where DY's lh operations would be sold off to IAG is their best option. It'd be really sad to see the DY brand go i short haul...
Last edited by TheHunt3r on Thu Apr 12, 2018 2:18 pm, edited 1 time in total.
 
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GCT64
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:53 pm

evank516 wrote:
downdata wrote:
If in doubt, buy out your competition :)

See AS/VX ;)


You don't need to look that far away from BA, what about:

BA + BCal
BA + Dan-Air
BA + BMI
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Andy33
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:58 pm

dtw2hyd wrote:
Norwegian should buy IAG, or at least management of merged group should be transferred to Norwegian.

Otherwise, Willy will cut Norwegian service level further, hard to imagine.


Cut Norwegian service level further?
You mean like charging for hold bags, charging for food and drink in economy on board, charging for seat reservations, not having enough spare planes so ACMI operators have to be used? But that's all in the Norwegian business model already!
 
jetwet1
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 1:59 pm

dtw2hyd wrote:
Otherwise, Willy will cut Norwegian service level further, hard to imagine.


Just to answer this briefly, i've done 4 long haul legs on DY in premium over the last 6 weeks, for comparison to BA's WT+

Better seats on DY, more seat pitch and width
Food is a wash, i've had great food on both, bad on both, though DY seems to carry less of each choice so runs out by row 3 of one of the dishes
IFE, if you are in a newer aircraft BA wins, but only on choice, DY has a great IFE system, but they lack the number of choices
FF program, I have to give it to DY, if only because I hate having to pay a fuel surcharge on an award ticket and DY's FF program is, well interesting to say the least.
Crews, it's a wash again.
Network, depends where you live, for me DY actually has better coverage than BA, for most that probably isn't the case.
Cost's...I looked one month out, LAX - LHR/LGW in WT+ and Premium, DY came in at $1744, BA at $1761, I should note that one part of the DY ticket it their flexible fare, adds about $100 to the cost.

All in all, if WW cuts services, it will bring it in line with BA's WT+ service...As to the economy cabin, I cannot comment, I have not flown it.

Okay, the topic in hand, I can wrap my head around the reasons for this move by BA, however, I am having a heard time understanding where DY's LGW routes fit into this, I can see IAG dismantling those and using those slots (and some of the aircraft) for a BA expansion, the rest of the DY network gives IAG the European network it's been trying to build for how long ?
 
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yowza
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:00 pm

airbazar wrote:
Arion640 wrote:
Would the competition commission of the EU allow a full merger?

This will not go down too well with LH group/Air france-KLM.


What merger? IAG is NOT an airline. When are people going to understand that? I see zero competition issues here.

The word he was looking for was acquisition rather than merger - that was clear. Since we're being pedantic and talking about mergers I regret to inform you that airlines don't exclusively have to merge with other airlines...

YOWza
 
A388
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:04 pm

adamblang wrote:
A388 wrote:
Guys, based on the press release of IAG themselves, it seems to me that IAG is saying that they are not having talks with Norwegian and that they don't plan to buy a minority stake in Norwegian.

Their release says IAG "has acquired a 4.61 per cent ownership position in the airline (minority investment)" and "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."
They bought a chunk of the company to force Norwegian management to talk to them.


Adam I know that but I get the impression that IAG is first quoting what the rumor says which is what you're quoting and afterwards they say what I quoted about them not buying a stake.

I can however imagine that this might be a smoke screen as another member said as well.


A388
 
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Jayafe
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:11 pm

armchairceonr1 wrote:
...IAG benefit maybe most of all Norwegian's competitors, if it fade away. It seems that IAG bosses didn't want to wait and see what happen to Norwegian. Bid could bee everything between 200-1000 NOK, if ever happend. Maybe it's still time to buy. :)


IAG already played the waiting card with Niki, and we all know how it went. Better to pay a bit on time than losing the train.
 
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par13del
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:13 pm

evank516 wrote:
downdata wrote:
If in doubt, buy out your competition :)


See AS/VX ;)

I am so waiting to see someone say that is the US market with its race to the bottom, such things do not happen on the "correct" side of the pond....
 
stlgph
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:18 pm

If I'm Bjorn Kos, I'd pick up the phone and call Al-Baker and offer him 4.62% ;)
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enilria
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Re: IAG Looking into buying Norwegian

Thu Apr 12, 2018 2:22 pm

Someone83 wrote:
According to both Bloomberg and Norwegian media, IAG is looking into buying Norwegian, and had confirm their interest. What is also know is that they today have bought 4,6% of Norwegian’s shares. So this could be interesting

IAG is smart to try to buy them. If the EU and DOT allow it they are crazy. I'd be shocked if the EU allowed it.

As I have documented many times, Norwegian is not doing badly. They are just growing rapidly to reach critical masse which always suppresses earnings temporarily. The fact they are able to grow this fast with earnings still where they are is actually excellent . There is nothing in their earnings so far that implies they are in any real financial trouble. Growth does require a lot of investment, so it may be that they are interested in cashing out with a deal like this, but they are not in a bad situation from an earnings perspective. That's just propaganda from the other airlines.
 
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Jayafe
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:24 pm

stlgph wrote:
If I'm Bjorn Kos, I'd pick up the phone and call Al-Baker and offer him 4.62% ;)


You mean the owner of 20% of IAG? :?
 
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lightsaber
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:36 pm

mcdu wrote:
Mortyman wrote:
It would surprise me if the ceo who is the majority owner and controls the company is interested in selling. Certainly not for the sum that is presented today.


It’s only worth what the market it willing to pay.

If Norwegian is worth more... Sell to whom bids more.

In my opinion the enterprise has a negative value, so get out while it is good. If the Norwegian board doesn't sell, they should be held personally liable.

This benefits both parties. The only hurt is to FR. IAG could boost yield day one.

I don't see anyone outbidding IAG.


Lightsaber
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a350lover
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:41 pm

Does anyone know what happens with the Scandinavia-BKK routes of DY which are currently operated just 1x weekly from each OSL, CPH and ARN?
I don't remember any other EU summer season with such a cut in frequencies. They were actually among the first ones to operate the Norwegian long haul model.
 
ahj2000
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:50 pm

IF, however unlikely, the EU competition authorities approve a deal for total control over DY, I could see IAG, after scaling back the model a bit in the home markets of UK/Spain/Ireland, actually expanding the Norwegian model a bit further. Let's face it, Level is unnecessary, and Norwegian and\or Vueling takes over the longhaul at BCN/PAR.
A few other things they'd want to do: Spanish domestic market is scaled back to just IB/VY, PAR LCC operations combined at either ORY or CDG, scale-down of BA on lower-market routes like LGW-FLL/OAK while maintaining a presence on LGW markets they need to be in for colonial reasons, like BGI and NAS.
I also wonder how AY would react, as DY has a few dozen routes out of HEL, including domestic routes like Rovaniemi and Kittilä and money-making routes to the south.

Maybe Norwegian could teach IAG something about what shorthaul Y should look like ... :stirthepot:
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enilria
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:52 pm

ahj2000 wrote:
IF, however unlikely, the EU competition authorities approve a deal for total control over DY, I could see IAG, after scaling back the model a bit in the home markets of UK/Spain/Ireland, actually expanding the Norwegian model a bit further. Let's face it, Level is unnecessary, and Norwegian and\or Vueling takes over the longhaul at BCN/PAR.
A few other things they'd want to do: Spanish domestic market is scaled back to just IB/VY, PAR LCC operations combined at either ORY or CDG, scale-down of BA on lower-market routes like LGW-FLL/OAK while maintaining a presence on LGW markets they need to be in for colonial reasons, like BGI and NAS.
I also wonder how AY would react, as DY has a few dozen routes out of HEL, including domestic routes like Rovaniemi and Kittilä and money-making routes to the south.

Maybe Norwegian could teach IAG something about what shorthaul Y should look like ... :stirthepot:

You are right that the goal in this acquisition would be "scaling back Norwegian". That's why it shouldn't be approved.
 
stlgph
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 2:53 pm

Jayafe wrote:
stlgph wrote:
If I'm Bjorn Kos, I'd pick up the phone and call Al-Baker and offer him 4.62% ;)


You mean the owner of 20% of IAG? :?


Of course. U-Turn Al is only in the game to piss people off.
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kaitak
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Re: IAG Looking into buying Norwegian

Thu Apr 12, 2018 2:55 pm

Jayafe wrote:
MalevTU134 wrote:
...and a new, unknown-to-most brand, Level, for long-haul. Now they will have a loss-making brand with AOCs and subsidiaries in who-knows-how-many countries to integrate into all of this, and try to make sense of it and sell it to the general public.


Not that messy. Level has no AOC, already flying as IB birds. Move those A330s to MAD and repaint them, focusing 787s in BCN as 2nd national HUB but for LCC, same in London with DY’s Dreamliners in Gatwick, keeping BA for LHR mainly.
Set them both to connect with MAD and BCN to connect with the expanding South America AOC and brand recognition, feed the LH flights from the east with VY.
.


The idea of DY taking over from BA at LGW occurred to me; they could easily take over the short haul operation and rationalise the long haul routes. DY has a few 789s still to come, but don't know how many they will take; maybe some will go to BA long haul, to replace older 772s, or (if it's still possible) converted to 787-10s. I can see some (if not most) of the Scandinavia-US flights being scrapped (since these seem to be heavy loss makers), then returning 788s to lessors and replacing them with 789s (which will have better CASMs).

A few questions that came to my mind:
Interesting also to see how (if they do complete a takeover), this will fit into the overall IAG structure.
- Will they continue (or increase) t/a routes from DUB, or cut them and let EI remain the sole long haul operation out of DUB. Suspect that the plan is to play each against the others, in order to lower costs.
- Which of Norwegian or Level will become their long haul low cost brand?
- Will they use the Norwegian A321NeoLR order for other airlines in the structure (including EI)?

A very interesting development. Good news for (some) DY staff, but I suspect that Willie Walsh and IAG will have a plan of cuts to Norwegian which will be worthy of Freddie Krueger!
 
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enilria
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Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:00 pm

lightsaber wrote:
In my opinion the enterprise has a negative value, so get out while it is good. If the Norwegian board doesn't sell, they should be held personally liable.

You keep beating that horse, but it is based on nothing. They have lost money for one quarter.

They made money in 2 of the 4 quarters in 2017 and made a full year profit in 2016 and 2015. Hardly a worthless company.
https://www.norwegian.com/uk/about/comp ... entations/
 
armchairceonr1
Posts: 220
Joined: Sun Jul 30, 2017 8:09 am

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:00 pm

enilria wrote:
lightsaber wrote:
In my opinion the enterprise has a negative value, so get out while it is good. If the Norwegian board doesn't sell, they should be held personally liable.

You keep beating that horse, but it is based on nothing. They have lost money for one quarter.

They made money in 2 of the 4 quarters in 2017 and made a full year profit in 2016 and 2015. Hardly a worthless company.
https://www.norwegian.com/uk/about/comp ... entations/

Actually they made money in 1 quarter in 2017. Q2 profit was made at paper, which they had to reject later.
 
leghorn
Posts: 582
Joined: Sun Jan 22, 2017 9:13 am

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:09 pm

I'm guessing that Norwegian LCC LH has hurt BA and EI somewhat and despite them saying that the guys up the front of the plane deliver the profits they still need the cheapskates down the back. Norwegian was stealing enough of them for the effect to be observable and they'd like to cripple Norwegian before they do more harm.
I believe they are playing the role of the Dog in the Manger but can't admit they are the Dog in the Manager otherwise they'd be forced to divest.
 
santi319
Posts: 621
Joined: Thu Dec 29, 2005 3:24 pm

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:16 pm

If I was a crew at Norwegian working for OSM Aviation, I would start filling applications elsewhere NOW
 
SCQ83
Posts: 4289
Joined: Wed Oct 03, 2012 8:32 pm

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:23 pm

WingsOfLove wrote:
More likely WW is going to use it to expand in markets he's been trying his luck with mixed results. AMS, CDG/ORY, FCO.


Indeed; Vueling tried to do that and has failed.

I would add Germany (Berlin, Munich or Dusseldorf) to the mix, as Norwegian intends to fly long-haul from Germany.

And also it will place IAG in a good position in Scandinavia, where they have been traditionally weaker than other groups like Lufthansa. And Scandinavia - London is an important business market, and Scandinavia - Spain a huge holiday market. I don't think Scandinavia (which is a relatively small market) is critical in this potential acquisition, but it is always another plus.

GCT64 wrote:
You don't need to look that far away from BA, what about:

BA + BCal
BA + Dan-Air
BA + BMI


Those are/were niche carriers with little relevance outside their home country. Very different than Norwegian that, to start with, is already quite well known in the US.
 
User avatar
WingsFan
Posts: 288
Joined: Tue Oct 06, 2009 1:24 pm

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:31 pm

For a few seconds, I thought Niagara Falls international airport (KIAG) was bidding to get a service.
 
User avatar
JetBuddy
Posts: 1981
Joined: Wed Dec 25, 2013 1:04 am

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:37 pm

Surprising news for sure.

If the acquisition goes through, I believe the long haul branch would be dismantled and aircraft moved to BA.

The short haul network would stay intact together with the Norwegian brand, helping fight Ryanair.

But those are just guesses.
 
sevenair
Posts: 2681
Joined: Sun Feb 04, 2001 7:18 am

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:38 pm

Strato2 wrote:
Can't see this flying with the EU authorities.


Who knows. They’re totally ok with illegal state aid, sorry, I mean ‘loans’ given to failed airlines such as Air Berlin just to keep them going beyond a general election and Alitalia has now delayed paying back the ‘loan’ it has been given to keep it flying.

So who can really say?

What’s really going to be interesting is pilots retention would surely increase which could result in difficulties for Ryanair between now and the time they ‘pivot away’ from the UK. Last autumn’s charade was likely due to pilot numbers and with the supply of people with £110,00 (or parents stupid enough to remortgage for) diminishing then I see problems for recruitment and retention for all airlines. A huge win for pilots and i have zero sympathy for the airlines who created this mess.
Lemons and melons and pears, oh my!
 
mcdu
Posts: 1280
Joined: Thu Apr 28, 2005 5:23 am

Re: IAG considering placing a bid for Norwegian

Thu Apr 12, 2018 3:43 pm

santi319 wrote:
If I was a crew at Norwegian working for OSM Aviation, I would start filling applications elsewhere NOW


Good luck with that. The welcome mat is not rolled out for them by the industry. Pilots will have a say on hiring boards and I suspect it will be a long time before any US carrier pilot board wants someone from NOrwegian. The other nations may feel different.
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