NORWEGIAN AIR SHUTTLE

Analysis of Norwegian Air Shuttle share price

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To take effective positions on the Norwegian Air Shuttle share price, it is imperative that you learn more about this stock and the company. This article will provide you with useful information for your analyses of its exchange rate such as a complete presentation of the group's activities, a presentation of its direct competitors and some examples of partnerships it has recently set up. We'll also tell you which elements to take into account as part of your fundamental analyses of this stock.

Elements that can influence the price of this asset:

Analysis N°1

First, closely follow the strategies put in place by the group in order to achieve its goal of becoming one of the leaders of long-haul LCC around the world.

Analysis N°2

The creation of new air routes by Norwegian Air Shuttle is also part of the events to follow for this fundamental analysis because this would allow the group to broaden its reach and gain new customers, especially internationally.

Analysis N°3

The establishment and development of new customer services aimed at increasing their loyalty through a marketing strategy is also an important element to take into account.

Analysis N°4

You should also closely monitor the group's competition in its sector of activity with the main airlines operating in the same segments as well as low cost airlines which have been gaining ground in recent years.

Analysis N°5

The cost of energy raw materials and more specifically of fuel is a factor that can impact the group's profitability and therefore its stock market share.

Analysis N°6

Finally, pay attention to the group's advertising campaigns which are currently less frequent and qualitative than those of the competitors and which could therefore harm this company.

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General presentation of Norwegian Air Shuttle

Now let's take a few moments to take a look at Norwegian Air Shuttle and its business. With perfect insight of the sources of income of the company, you’ll have more chances to anticipate the possibilities of development and growth.

The Norwegian Air Shuttle group is a Norwegian airline company which operates in three main areas of activity, details of which are as follows:

  • First of all, passenger transport services represent the major part of the group's activities since it generates more than 80.9% of the total turnover of this company.
  • Next come the services which represent 15.3% of the group's turnover with reservation, baggage management and ticket sales services.
  • Freight transport services represent 1.7% of the company's turnover.
  • Finally, the balance of turnover, i.e. 2.1%, comes from a few ancillary activities.

It is also interesting to know the geographical distribution of the turnover of Norwegian Air Shuttle which generates only 19.9% of its turnover in Norway. The rest, 19.1% from the United States, 13.8% from Spain, 10.2% from the United Kingdom, 7.9% from Sweden, 6.8% from Denmark, 4.5% from France, 2.8% from Finland, 2.8% from Italy, 1.7% from Argentina and 10.5% from the rest of the world.

The group currently employs around 9,389 people.

Analysis of Norwegian Air Shuttle share price
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The major competitors of Norwegian Air Shuttle

It's also important to know the main competitors of Norwegian Air Shuttle well in order to integrate them into your analyses of this value. Here is a presentation of its most important adversaries in its market:

EasyJet 

This British low-cost airline is one of the main competitors of Norwegian Air Shuttle and is the second European company in terms of passengers. This company is owned by Stelios Haji-Ioannou through its participation in Easygroup, a company registered in Jersey. EasyJet employs nearly 10,000 people and has been in existence since 1995 after a loan of 5 million pounds from the father of Stelios Haji-Ioannou, a ship-owner from Cyprus. EasyJet is listed on the London Stock Exchange and is part of the FTSE 100 stock index.

Finnair

This other airline this time is a Finnish company and the flag carrier of the Republic of Finland. This company operates mainly from Helsinki-Vantaa airport and is the leader in the domestic and international air markets in Finland. The group is 60% owned by the Finnish state and 20% by foreign investors. The shares of this company are listed on the Helsinki Stock Exchange. Finnair is also a member airline of the Oneworld alliance.

Scandinavian Airlines System

Also known as SAS AB, this Scandinavian airline is arguably Norwegian Air Shuttle's most direct competitor. It previously owned the regional airline Wideroe and the now defunct airlines Aerovias Guest, Spanair, Braathens, Flyyelskap, bmi and Bluel. It still owns 37.5% of Air Greenland and 2.66% of Estonian Air today.


The major partners of Norwegian Air Shuttle

Now, let's take a look at the strategic alliances that the Norwegian Air Shuttle group has put in place in the past and which may have an impact on its stock market price. Here are two tangible examples of partnerships that have had repercussions on this value and its evolution.

JetBlue

First of all, the Norwegian Air Shuttle group signed a partnership with JetBlue in 2019 with the aim of allowing passengers to make a single reservation to combine their Norwegian transatlantic flight with a connecting flight from the JetBlue network in the United States, Latin America or the Caribbean. Since then, flights can be booked on the websites of the two companies and allow two huge complementary networks to be associated. This partnership entered into force during the summer of 2020. Another benefit of this alliance is that it will connect the JetBlue network, which provides flights to over 60 American cities and 40 cities in the Caribbean and Latin America, to the Norwegian network through New York JFK, Boston and Fort Lauderdale airports. Passengers' luggage can also be checked in for their entire journey.

Ryanair 

Finally, the second past partnership was signed in 2017 with Ryanair aimed at competing with large companies by offering their respective passengers the benefit of an extended network of transatlantic medium and short-haul flights. The merger of these two entities has made it possible to promote connectivity between the flights of each of them. Norwegian Air Shuttle has therefore been able to supply its transatlantic lines by relying on Ryanair's short and medium-haul network.

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Frequently Asked Questions

When and how was Norwegian Air Shuttle created?

The Norwegian Air Shuttle group was created in 1993 by the takeover of the regional Busy Bee operations from Brathens which provided charter flights in western Norway with three Fokker 50s. A few years later, in 1999, the group was carrying nearly 500,000 passengers with 6 aircrafts. In 2001, Brathens was acquired by SAS Scandinavian Airlines, which ended Norwegian Air Shuttle's collaboration with it.

Who are the different subsidiaries owned and operated by Norwegian Air Shuttle?

The Norvegian Air Shuttle group operates through several airlines. Of course, it operates the company of the same name, Norwegian Air Shuttle, but also other airlines including Norwegian Long Haul also in Norway, Norwegian Air International in Ireland, Norwegian Air UK in the United Kingdom and even Norwegian Air Argentina in Argentina. The group may subsequently develop other companies and subsidiaries of this type.

How to anticipate a rise in the Norwegian Air Shuttle share price?

There are a number of things that can influence an uptrend in the Norwegian Air Shuttle share price that you should be aware of in your analyses. These can be fundamental elements such as economic and financial news or publications or even technical and graphic indicators.

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