Ryanair CEO has said that rival carrier Norwegian is saddled “with enormous debts” and is “doomed”
As part of his explanation that Norwegian’s business model isn’t viable, O’Leary referenced their recent action into a unit of China Aircraft Leasing Group Holdings Limited. At the time, Norwegian said in a statement that the sale “is in line with the company’s continued strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability.”
However, O’Leary took a different view. “They’re now resorting to selling the aircraft to raise 50 million bucks, which wouldn’t pay the fuel bill for a week. Norwegian is doomed, the business model doesn’t work and they’re saddled now with enormous debts. It’s only a matter of time before it goes bust,” he said.Searching for a budget long-haul model that works
O’Leary’s comments are shared by others in the industry who point to the collapse of other airlines including Primera Air and Wow Air as evidence that the model isn’t viable.
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