Norwegian Air Shuttle Tuesday became the latest budget carrier to cut its earnings outlook amid tough competition and after IAG ruled out a bid for the loss-making company. Norwegian's CE, Bjoern Kjos, said the airline "has been through a period with significant growth" that left it with hefty losses and high debts. He said that the company needed more capital and was selling shares worth US$350m. The airline's problems echo those of rivals, with Ryanair issuing recently its second profit warning in 4 months as tough competition pushed down fares over the winter. Other budget carriers, like Iceland's Wow, have needed financial rescues or takeovers. According to preliminary figures, Norwegian Air is expected to report next month that its revenues last year were $4.7b, leading to an operating loss of approximately $446m. <br/>
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Ryanair has gained complete ownership of LaudaMotion with the acquisition of the 25% stake in the Austrian LCC held by its founder, former Formula 1 driver Niki Lauda. The transaction was completed Dec 31, 2018; Ryanair had previously acquired a 75% stake in LaudaMotion. Lauda will remain as chairman of the subsidiary’s shareholders committee, Ryanair CE Michael O’Leary said. The airline had estimated losses of E140m (US$160m) in its first year, and losses of E50m are possible in 2019, O’Leary said. “The target is to deliver 6m passengers this year and not to break even. We will fund those losses,” he said. “This also depends on summer fares. But we also need better punctuality, which will again be difficult this year.” In the summer, the carrier will operate 21 Airbus A320s and 4 Boeing 737-800s wet-leased from Ryanair. <br/>
Ryanair could acquire 1 or 2 smaller airlines like its separately branded Polish and Austrian units in the coming years, but "nothing big", CE Michael O'Leary said Tuesday. "You'll see in the next couple of years, I'd like to see Ryanair evolve as kind of a group of different airlines. We will have Ryanair based out of Ireland, you'll have Laudamotion based out of Austria, you'll have Ryanair Sun ... in Poland," he said. "That will I think allow us in the next number of years to maybe add 1 or 2 other airlines. Now, nothing big but if there were some small-scale opportunities that popped up like the Laudamotion opportunity then we could do it," he said, adding that they would have to bring new bases in Europe. <br/>
Ryanair reported progress, Tuesday, in averting possible further strike action by cabin crew. The revealed that its directly employed cabin crew in Spain have voted by a majority of 99% in favour of a recognition agreement with 2 local unions – Sitcpla and USO “The airline and Sitcpla and USO are now progressing a collective labour agreement which they both hope to conclude on/before April 30,” the airline said . The two Spanish cabin crew unions called for 3 days of strikes in early January as part of a dispute over working conditions although these were subsequently suspended to allow for negotiations to continue. Ryanair was forced to cancel 250 flights in September affecting 35,000 passengers due to protests by unions in countries across Europe. <br/>
Southwest Airlines benefited from an unusual deal with federal aviation regulators during the recent partial govt shutdown: The carrier agreed to cover the cost of briefly recalling a furloughed safety inspector to sign off on putting 3 new jets into service. The arrangement called for only a US$3,150 payment and 3 hours of administrative office time, according to a FAA spokesman. He also said Tuesday that the headquarters issued the order after agency managers and lawyers struck the agreement and determined most of the work had been completed before the shutdown, and that the move complied with laws and regulations restricting agency functions while the budget impasse dragged on. But the deal has been criticised by union officials. <br/>