More trouble on the radar for Norwegian
Norwegian Air Shuttle has long been seen as one of the airlines that would have a hard time surviving 2019. While reports of its demise have been exaggerated, the trans-Atlantic disrupter will still struggle to navigate the rest of the year. Since 2013, Norwegian has led a breakneck expansion with the promise of bringing the low-cost model of short-haul airlines across the Atlantic. But the company now has a massive debt pile, and keeps bleeding cash. With a US$320m bond payment looming in December and demand for flights weakening in Europe, its shares could have much lower to go. Norwegian’s very survival has surprised many analysts, who were expecting it to go bust during the winter low season after triggering loan covenants that mandate a minimum level of cash and balance-sheet equity. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-08-21/unaligned/more-trouble-on-the-radar-for-norwegian
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More trouble on the radar for Norwegian
Norwegian Air Shuttle has long been seen as one of the airlines that would have a hard time surviving 2019. While reports of its demise have been exaggerated, the trans-Atlantic disrupter will still struggle to navigate the rest of the year. Since 2013, Norwegian has led a breakneck expansion with the promise of bringing the low-cost model of short-haul airlines across the Atlantic. But the company now has a massive debt pile, and keeps bleeding cash. With a US$320m bond payment looming in December and demand for flights weakening in Europe, its shares could have much lower to go. Norwegian’s very survival has surprised many analysts, who were expecting it to go bust during the winter low season after triggering loan covenants that mandate a minimum level of cash and balance-sheet equity. <br/>
