|Bid||56.32 x 6100|
|Ask||56.66 x 128200|
|Day's Range||56.40 - 61.10|
|52 Week Range||30.00 - 4,248.00|
|Beta (5Y Monthly)||1.32|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 18, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||224.45|
(Bloomberg) -- Norwegian Air Shuttle ASA aims to exit Irish insolvency proceedings in April as the carrier jettisons its low-cost long haul business to focus on flying in the Nordics.The airline expects to raise as much as 5 billion kroner ($580 million) in capital, including up to 2.5 billion kroner from existing creditors through a hybrid debt instrument, according to an investor presentation Wednesday. Secured creditors that contribute to the equity raise will boost their holdings, the company said.Norwegian will also “rightsize” its fleet through the Irish examinership process and issue fresh equity at the end of February or early March, it said. The write down of leased and financed aircraft assets is set to reduce equity by about 10 billion kroner before exiting the restructuring, with all large creditors expected to take losses and their debt converted into equity, according to the presentation.At the end of the process, new investors, which could include the Norwegian government, will own 70% of the equity. Converted creditors will hold a 25% stake and current shareholders 5%, the company said.Last week, the carrier was granted an extra five weeks of creditor protection by an Irish court, buying the embattled airline extra time to complete a restructuring aimed at staving off collapse. The discount airline, struggling to survive after the coronavirus crisis stunted international travel, qualified for the Irish procedure via its local divisions Arctic Aviation Assets and Norwegian Air International.Norwegian, which said this month that it would exit long-haul operations, plans to operate a fleet of 53 aircraft in summer 2021, with the majority of its routes to and from Scandinavian airports, it said in the presentation. It plans to scale up the fleet to 68 aircraft in 2022.The carrier will operate the aircraft on so-called power-by-the-hour terms until March 2022. These contracts allow it to only pay for aircraft when it flies them. The future use of the Boeing Co. 737 Max, which was cleared to return to European skies by the region’s aviation safety regulator on Wednesday, will be “clarified” in the restructuring.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Norwegian Air Shuttle ASA won state backing for its slimmed-down restructuring plan, boosting the bankrupt carrier’s bid to attract new investors and exit insolvency proceedings.The Norwegian government said Thursday that it will participate in a hybrid loan for the airline, provided enough outside capital is raised and the restructuring plan receives court approval.The expression of support comes a day ahead of an Irish court hearing as part of the carrier’s examinership process. The government commitment significantly increases Norwegian Air’s chances of working through the crisis, the airline said in a separate statement.“With a new business plan, and a participation from the government, we are confident we can attract investors and get through the examinership and reconstruction process,” Chief Executive Officer Jacob Schram said.The shares surged as much as 18% in Oslo.Norwegian Air, like most other airlines, suffered a body blow after the coronavirus pandemic grounded countless flights and plunged the industry into an historic crisis. The carrier had already been struggling after its aggressive push into the low-cost, long-haul market left it with too much debt.The company cut thousands of jobs and reined in its network to save money as the outbreak stifled demand. But the government rejected Norwegian Air’s request for a second multi-billion krone rescue package on Nov. 9, partly because some of the aid would be used to fund the long-distance business focused on London’s Gatwick airport, and wouldn’t benefit Norway.Norwegian Air filed for bankruptcy protection less than 10 days later. With the restructuring plan unveiled on Jan. 14, the carrier will give up the discount long-haul business, returning to its roots operating shorter European flights. About 2,100 jobs will be lost with the move, including 1,100 in the U.K.The restructured airline would serve the Nordics and European destinations with about 50 narrow-body aircraft in 2021, rising to 70 planes next year. The carrier plans to raise up to 5 billion kroner ($590 million) through a rights issue, a private placement and the hybrid instrument.The new business plan seems “more robust” than the one previously rejected by the government, Trade and Industry Minister Iselin Nybo said in the government’s statement. Provided Norwegian lives up to the new strategy, the government can contribute with a hybrid loan, she said, adding that the state has “no ambitions to become an owner.”Click here to read the full terms set by Norway’s government.Norwegian shares were up 12% as of 10:22 a.m. local time, having lost 98% of their value last year.“We still have a lot of work ahead of us, but a participation from the government underscores that we are heading in the right direction,” Schram said in the statement.(Adds details of airline’s plan in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg Opinion) -- Hug the grandparents, celebrate with friends and hit the beach: Whatever your plans once you’ve been vaccinated for Covid-19, there’s a good chance it involves getting on a plane.More than half of Americans and Europeans may have been vaccinated by mid-2021, according to analysts at Goldman Sachs Group Inc. Some forecasts aren’t as rosy. But if the rollout goes smoothly, and there’s a way for passengers to prove they’ve been inoculated, air travel could start to recover. Speed is of the essence, and not just to protect lives: Summer is when European airlines make most of their revenue.Any recovery of this beleaguered industry remains vulnerable to setbacks, however. The new restrictions imposed on flights from Britain, where authorities warn that Covid has mutated to become more virulent, is a reminder of that. Monday’s sell-off of European airline stocks shows the dangers of investor complacency. More grounded planes during the usually busy Christmas period means less cash to repair airline finances.Respite can’t come soon enough. Leaving aside cargo, where constrained capacity has led to strong pricing, 2020 has been a miserable year for aviation. And it’s ending much as it began, with a surge in virus cases and more stringent lockdowns, which have slowed international travel to a trickle. There will have been about 6 million fewer European flights in 2020 compared with 2019, according to air traffic management organization Eurocontrol. That’s a 55% decline. Even if vaccines are administered rapidly, air traffic probably won’t recover to 2019 levels before 2024. Airlines’ borrowings have ballooned in their efforts to remain afloat. Virgin Atlantic Airways Ltd. and Norwegian Air Shuttle ASA filed for creditor protection to restructure unsustainable liabilities. Deutsche Lufthansa AG and Air France-KLM shared almost 20 billion euros ($24.4 billion) of government assistance between them, triggering claims that such aid has distorted competition. British Airways owner International Consolidated Airlines Group SA wasn’t so fortunate. It had to raise 2.7 billion euros in a discounted rights offering.Even before the latest U.K. travel embargoes, EasyJet Plc expected to have flown no more than 20% of its regular capacity in the final three months of 2020. When demand is so low, cost cuts often aren’t enough to prevent cash draining out of the airlines. Lufthansa is bleeding around 350 million euros each month and is expected to cut tens of thousands more jobs. Air France-KLM needs to raise equity to rebalance its debt-heavy capital structure.And yet, investors have been minded to look beyond the short-term pain and focus on how vaccines might transform travel demand. Remarkably, the shares of Wizz Air Holdings Plc and Ryanair Holdings Plc are back to where they were before their shareholders began fretting about the new coronavirus in February. These budget airlines’ finances are in better shape than full-service rivals, and they’re more oriented toward leisure and short-haul travel, which are expected to recover first. (Business travel will probably rebound more slowly because companies won’t want to risk employee health.)But investors may have become too complacent before this week’s U.K. wake-up call. Wizz is valued at close to 50 times forward earnings. With unemployment rising in the U.K. and elsewhere, many people won’t have the money to travel in 2021. The lack of international coordination on travel restrictions and quarantines is still worrying, too, with countries often deciding new rules unilaterally and suddenly, as British travelers discovered at the weekend. No wonder the few customers still booking do so at very short notice, giving airlines much less visibility of future demand.Vaccination may eventually become essential for international travel but even passengers who’ve taken their shots might be capable of spreading the virus. A combination of prevention measures will probably remain in force for a while. Bitter experience has made governments cautious. The tourists who flocked to Europe’s beaches last summer, when restrictions were lifted, helped seed a second Covid wave.Preflight virus testing is more widely available, but this hasn’t convinced many passengers that flying’s worth the hassle. England’s “test and release” program to cut quarantine times suffered a chaotic start. Setting up travel bubbles between countries has been difficult. There’s hope that digital apps and health passports, being developed by the airline industry to store virus test results and Covid vaccine certificates, will eventually make quarantines unnecessary.Airlines and tour operators believe there’s massive pent-up demand for travel. Bookings surged this year when European countries lifted restrictions on popular destinations such as the Canary Islands. Wizz is especially bullish. The no-frills Hungarian carrier aims to add 30% more aircraft to its fleet by 2022 compared with March. Its customers tend to be younger and need to fly for work or to visit friends and family. Nonetheless, the elderly will be first in line to receive the vaccine. A boom in travel by the over-60s might annoy millennials and Gen-Z travelers, who already feel they’re getting a rough deal being cooped up inside, but it would be a clear sign that confidence is returning. Just don’t count on it yet.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.