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Norwegian Air gets new deal from Boeing due to problemed 737 aircraft

  30.04.2019    

Cash-strapped Norwegian Air Shuttle ASA has obtained a deal to delay deliveries of Boeing's 737 Max jets, helped by the bargaining power granted by the model's global grounding after two fatal crashes.
Boeing agreed to postpone the handover of 14 Max 8s due in 2020 and 2021, which together with an outline accord to restructure Airbus SE deliveries will reduce capital spending by US$2.1 billion, Norwegian Air said.
The airline has the greatest exposure in Europe to the crisis surrounding the 737 Max, with 18 planes currently idled. At the same time, the company has been re-evaluating a mammoth order book amid industry overcapacity and falling prices, with the grounding presenting it with an opportunity to revisit fleet requirements, London's Air Cargo News reported.
"We have had some productive meetings with Boeing where we have discussed how we can manoeuvre through the difficulties the Max situation is causing Norwegian," CEO Bjorn Kjos said in a statement. He added that the financial impact of the grounding may be close to US$60 million.
The delivery delays at Fornebu-based Norwegian, which will now keep older 737-800 planes in its fleet for longer, may help Boeing meet the needs of other customers once the Max resumes flights. Mr Kjos said he doesn't expect that to happen until August at least.



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