The article sounds like what every a.netter has been saying...
Ryanair’s CEO Michael O’Leary said that rival airline Norwegian is bound to go bust sooner or later, claiming that the company is “doomed.”
Never one to mince his words, O’Leary told CNBC Monday that the rival budget European airline Norwegian was saddled “with enormous debts.”
“We’re seeing the emergence of four or five large airlines across Europe and Ryanair is by far the largest in passenger number terms, and you’ve seen in our numbers this morning that we’ve delivered 11% traffic growth ... on the back of 5% lower airfares,” he told CNBC’s “Squawk Box Europe.”
“We are continually cutting costs, Ryanair is continually passing on those lower fares, and that’s what stimulating our growth and it’s what’s accelerating the demise of airlines like Thomas Cook, (French budget airline) Aigle Azur and Norwegian, who I think won’t be far behind them.”
Asked whether he thinks Norwegian is going bust, O’Leary referenced Norwegian’s decision to sell aircraft this year.
“They’re now resorting to selling the aircraft to raise 50 million bucks, which wouldn’t pay the fuel bill for a week. Norwegian is doomed, the business model doesn’t work and they’re saddled now with enormous debts. It’s only a matter of time before it goes bust.”
A spokesperson for Norwegian, known formally as Norwegian Air Shuttle, wasn’t immediately available when contacted by CNBC.