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(Mallorca): on Wednesday night informed the English about the cut of some routes and the closings of the six bases, primarily in Spain and the united STATES. This is in line with the company's kostnadsprogram #Focus2019, where the English to save 2 billion in 2019.
Multiple sources tells Finansavisen that it was surprising with the cuts of the six bases, and that this may be linked with an imminent flysalg or sale of the entire business.
Triple effectAnalyst Kenneth Sivertsen of Pareto Securities says to the newspaper that the six bases are cut as a consequence of the cost program, and believe that this can drag down the capacity further for 2019.
Estimates from the company is a growth of 15 to 20 percent a year in 2019, we are located inside with a growth of 15 per cent, " says Sivertsen. the
Sivertsen points out that the routes that be cut most likely have gone into deficit with a negative return on capital and with low advance.
- Thus, it should provide a dual effect for the company, less losses through cutting routes and costs to get up the exploitation of the remaining bases. The third effect is that the company with lower growth will drop to rabattere the tickets so much, and when will the yield rise, " says Sivertsen to the newspaper.
Think on budkrigOne of the biggest shareholders in the airline believes the measure is very constructive, and think kostnadskuttene is twice as large as notified.
He thinks Kjos and Norwegian-the board of directors now "decorate the bride", so that either the IAG or other companies that will buy English, only can stand at the altar and give their "yes".
- Take one of the roughly billion the company shall not pay to the Rolls-Royce, so there are over four billion in savings. The question is only whether it is in time, as the costs do not get particularly large impact in the first quarter. Nevertheless, I believe that the management manage to get to an agreement about the aircraft in the near future, and if this is a grip company makes in advance of a flysalg, it's brilliant, " says the shareholder, to Mallorca, who wishes to remain anonymous.
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