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The boss of the Norwegian airliner, Norwegian places his growth strategy on mass bankruptcy from competitorsFriday, 17 February 2012
The Norwegian airline, Norwegian Air Shuttle reported a profit before tax of minus Nkr188 million for the fourth quarter. This went against expected profit before tax of minus Nkr149 million according to analysts consensuses.
Despite this worse than expected, results for the fourth quarter, Norwegian CEO, Bjorn Kjos feels buoyant about the future for the company. But his strategy is to waits for mass bankruptcy among the other airlines, writes the Norwegian business daily, Dagens Næringsliv.
"It has been one of the toughest years for the airlines. Many have broken their backs, "said Bjorn Kjos at the company's presentation of financial statements for the fourth quarter.
Especially, of all, the higher fuel prices, has eaten into the airlines' finances. Norwegian's fuel costs rose by 41 per cent, in 2011, representing an additional cost of Nkr 803 million. The higher expenditure according to eh prediction of Bjørn Kjos will be the wave of bankruptcies among airlines in 2012, and that will give Norwegian the opportunity to gain market share.
"We see considerable simpler competition already in the first quarter than we had in the fourth quarter. It is going to get much better now, because there are fewer companies that will make profit in 2012. “A combination of old aircraft and higher fuel prices - at all - it's dead-generating, "said Bjorn Kjos to Dagens Næringsliv.
By Scancomark.se Team
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