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davidjohnson6
Topic Author
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CEO of Norwegian resigns

Thu Jul 11, 2019 8:14 am

Bjorn Kjos has resigned effective immediately
 
Blerg
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 8:17 am

 
factsonly
Posts: 2962
Joined: Mon Aug 06, 2012 3:08 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 8:27 am

Not surprising with these financial results for Q2:

Net profit (loss) for the period = NOK 82.8 Million
Exchange rate differences Group = NOK -83.1 Million
Fair value adjustments through OCI = NOK -179.1 Million
Other = NOK -23 Million

TOTAL COMPREHENSIVE INCOME for Q2 = NOK -202.5 Million



They survived on the issue of NEW SHARES:

- Equity - Beginning of period NOK 1,704 Million
- Total comprehensive income for the period = NOK -1,745.8
- Share issue NOK 2,927.4 Million
- Equity change on employee options NOK 6.3 Million

- Equity - End of period NOK 2,892.3 Million
 
oslmgm
Posts: 225
Joined: Wed Dec 03, 2014 6:29 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 8:48 am

factsonly wrote:
Not surprising with these financial results for Q2 (...)

And since we're sticking to facts only, it's not surprising given he'll soon turn 73 years old, and he's been saying for a while that he won't be working through his 70s.
 
YIMBY
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 9:04 am

The financials were much better than last year and much better than expected by many. It does not mean, however, that the worries are gone.

Balance sheet is rather terrible
Assets: 90 600
Equity: 2892
Liabilities: 87707

And the operative profit (EBIT) for half year is -835, for the second quarter 622, i.e. of the order of 1 % of the debts.

They need a fantastic summer to survive. At least their fares are significantly higher than those of the competitors so maybe they have sold out their flights. Let us hope for the best.

Otherwise I agree that Kjøs's retirement can be honestly explained by age.
 
Mortyman
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 10:07 am

This has been known for some time that Mr. Kjos was about to step down. Nothing dramatic about it: https://media.uk.norwegian.com/pressrel ... wn-2896374
 
mcdu
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 11:22 am

Mortyman wrote:
This has been known for some time that Mr. Kjos was about to step down. Nothing dramatic about it: https://media.uk.norwegian.com/pressrel ... wn-2896374



The big question is with how terrible Norwegian has performed why was he allowed to be the CEO. Seems the board should have fired him long ago.
 
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Polot
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 11:31 am

oslmgm wrote:
factsonly wrote:
Not surprising with these financial results for Q2 (...)

And since we're sticking to facts only, it's not surprising given he'll soon turn 73 years old, and he's been saying for a while that he won't be working through his 70s.


Mortyman wrote:
This has been known for some time that Mr. Kjos was about to step down. Nothing dramatic about it: https://media.uk.norwegian.com/pressrel ... wn-2896374


The dramatic part is that he resigned effective immediately without a permanent successor lined up. When you are planning on retiring you don’t do that- you announce your end date ahead of time and have the new management prepared. Obviously there are people on the Norwegian board unhappy with his performance, and he was feeling the heat. The advisor position is to just make sure the power transition goes smoothly.
 
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SuseJ772
Posts: 998
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 11:35 am

It could also be health.
Currently at PIE, requesting FWA >> >>
 
SelseyBill
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 11:42 am

Polot wrote:
The dramatic part is that he resigned effective immediately without a permanent successor lined up.


.....maybe Willie Walsh will be making all the important decisions pretty soon?.......
 
Boeing74741R
Posts: 1400
Joined: Tue Apr 17, 2007 5:44 am

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 12:16 pm

Polot wrote:
oslmgm wrote:
factsonly wrote:
Not surprising with these financial results for Q2 (...)

And since we're sticking to facts only, it's not surprising given he'll soon turn 73 years old, and he's been saying for a while that he won't be working through his 70s.


Mortyman wrote:
This has been known for some time that Mr. Kjos was about to step down. Nothing dramatic about it: https://media.uk.norwegian.com/pressrel ... wn-2896374


The dramatic part is that he resigned effective immediately without a permanent successor lined up. When you are planning on retiring you don’t do that- you announce your end date ahead of time and have the new management prepared. Obviously there are people on the Norwegian board unhappy with his performance, and he was feeling the heat. The advisor position is to just make sure the power transition goes smoothly.


Plus if he was successful and his stock within the company was high he would be in a position where he could dictate when he goes. That said, it could well have been the case he chose to retire immediately by himself with the board's blessing.

Whoever comes in will have a challenge on their hands. To name a few...

*Stop the losses, make the whole operation profitable and keep it that way
*Manage the continuing impact of the 737 MAX groundings with no end in sight and on the assumption they won't be available anytime soon
*Fending off competition in both the short-haul and long-haul markets
 
LHUSA
Posts: 828
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 12:45 pm

Now he’s free to go help WAB get off the ground
 
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enilria
Posts: 10252
Joined: Fri Feb 22, 2008 7:15 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 1:42 pm

Polot wrote:
oslmgm wrote:
factsonly wrote:
Not surprising with these financial results for Q2 (...)

And since we're sticking to facts only, it's not surprising given he'll soon turn 73 years old, and he's been saying for a while that he won't be working through his 70s.


Mortyman wrote:
This has been known for some time that Mr. Kjos was about to step down. Nothing dramatic about it: https://media.uk.norwegian.com/pressrel ... wn-2896374


The dramatic part is that he resigned effective immediately without a permanent successor lined up. When you are planning on retiring you don’t do that- you announce your end date ahead of time and have the new management prepared. Obviously there are people on the Norwegian board unhappy with his performance, and he was feeling the heat. The advisor position is to just make sure the power transition goes smoothly.

This is really bad. Not that they are going to stop operating, but really bad in that it appears to end their era of fast growth pilloried by the other carriers. They basically say that in the transition announcement. They may remain a force for low fares, but it’s going to be mostly moving airplanes around rather than growth.
 
musman9853
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 2:01 pm

how much money does Norwegian have in the bank?
Welcome to the City Beautiful.
 
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TheFlyingDisk
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Re: CEO of Norwegian resigns

Thu Jul 11, 2019 2:18 pm

Peter Bellew is leaving Ryanair at the end of the year.

Could this role be his next?
I FLY KLM+ALASKA+QATAR+MALAYSIA+AIRASIA+MALINDO
 
Varsity1
Posts: 2223
Joined: Mon May 02, 2016 4:55 am

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 3:18 pm

TheFlyingDisk wrote:
Peter Bellew is leaving Ryanair at the end of the year.

Could this role be his next?


Norwegian won't last that long.
"PPRuNe will no longer allow discussions regarding Etihad Airlines, its employees, executives, agents, or other representatives. Such threads will be deleted." - ME3 thug airlines suing anyone who brings negative information public..
 
oslmgm
Posts: 225
Joined: Wed Dec 03, 2014 6:29 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 3:25 pm

There's a good video interview with Bjørn Kjos at this page, where he explains his reasons. I don't have the time to make an English translation now, but maybe someone else can do it. He says he believes Geir Karlsen could become a great CEO, but that it's up to the board.

He says his new role in the company will be building a low cost international alliance they're trying to form with EasyJet, looking for more partners on other continents. He says JetBlue could be an ideal US partner when they start flying transatlantic.

https://e24.no/boers-og-finans/presseko ... f/24656423
Last edited by oslmgm on Thu Jul 11, 2019 3:31 pm, edited 2 times in total.
 
Cointrin330
Posts: 1994
Joined: Sat Jul 16, 2016 12:23 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 3:29 pm

Norwegian is a pleasant airline to fly and a unique business model, but it has shown that the model does not have legs. I still believe it will eventually be swallowed up (and at a discount) by one of the big airline conglomerates. The value they have is the fleet, the slots, particularly at LGW, and within Europe, the network.
 
YIMBY
Posts: 723
Joined: Tue Sep 20, 2016 4:32 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 4:33 pm

Varsity1 wrote:

Norwegian won't last that long.


Many investors seem to believe that it will last. The market capital is still 5364 M NOK (580 M€), though going down 12,6 % today. (I would not invest a cent on it, though)

For comparison, SAS is 490 M€ and Finnair 958 M€, others much more or much less. (Source: Bloomberg)
 
Scotron12
Posts: 496
Joined: Fri Mar 01, 2019 2:13 pm

Re: CEO of Norwegian resigns

Thu Jul 11, 2019 4:36 pm

There was speculation that IAG was interested again...of course denied..which caused Norwegian stock to rise 6%.

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