{"id":4013,"date":"2019-03-13T11:16:49","date_gmt":"2019-03-13T16:16:49","guid":{"rendered":"http:\/\/planesintheair.com\/?p=4013"},"modified":"2019-03-13T11:16:55","modified_gmt":"2019-03-13T16:16:55","slug":"norwegian-air-to-seek-compensation-for-737-max-groundings","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=4013","title":{"rendered":"Norwegian Air to Seek Compensation for 737 MAX Groundings"},"content":{"rendered":"\n

* Norwegian cancels some flights after grounding MAX 8 aircraft<\/p>\n\n\n\n

* Airline says it maintains outstanding order for more planes<\/p>\n\n\n\n

* Ethiopian crash was second involving MAX 8 since October<\/p>\n\n\n\n

* Boeing has expressed confidence in safety of its plane<\/p>\n\n\n\n

* Analyst sees limited short-term impact for Norwegian (Adds statement on Dublin-New York replacement aircraft)<\/p>\n\n\n\n

OSLO, March 13 (Reuters) – Norwegian Air said on Wednesday it will seek compensation from plane maker Boeing for costs and lost revenue after grounding its fleet of 737 MAX 8 aircraft in the wake of the Ethiopian Airlines crash.<\/p>\n\n\n\n

“We expect Boeing to take this bill,” Norwegian said in an emailed statement.<\/p>\n\n\n\n

The\n Oslo-based airline has 18 ‘MAX’ passenger jets in its 163-aircraft \nfleet. European regulators on Tuesday grounded the aircraft following \nSunday’s crash of a similar plane in Ethiopia, which killed 157 people \nand was the second crash involving that type of plane since October.<\/p>\n\n\n\n

Boeing\n Chief Executive Dennis Muilenburg said on Monday that he was confident \nin the safety of the 737 MAX in an email to employees, which was seen by\n Reuters.<\/p>\n\n\n\n

Industry sources, however, said the planemaker faces big claims after the crash.<\/p>\n\n\n\n

Norwegian\n has bet heavily on the ‘MAX’ to become its aircraft of choice for \nshort- and medium-range flights in coming years as the low-cost carrier \nseeks to boost its fuel efficiency and cut the cost of flying.<\/p>\n\n\n\n

“What\n happens next is in the hands of European aviation authorities. But we \nhope and expect that our MAXes will be airborne soon,” Norwegian Air’s \nfounder and Chief Executive Bjoern Kjos said in a video recording \nreleased on social media.<\/p>\n\n\n\n

“Many\n have asked questions about how this affects our financial situation. \nIt’s quite obvious that we will not take the cost related to the new \naircraft that we have to park temporarily. We will send this bill to \nthose who produce this aircraft,” he added.<\/p>\n\n\n\n

Idle\n planes will add to pressures on the airline, which is making losses \namid intense competition at a time when several smaller European \ncompetitors have gone out of business.<\/p>\n\n\n\n

The\n carrier has raised 3 billion Norwegian crowns ($348 million) from \nshareholders in recent months and said it would cut costs as it tries to\n regain profitability this year.<\/p>\n\n\n\n

“If\n this situation gets solved within the next fortnight, this will not be \nvery serious for Norwegian,” said analyst Preben Rasch-Olsen at \nbrokerage Carnegie, adding that seasonally low demand in March likely \nleaves spare capacity.<\/p>\n\n\n\n

“The little extra costs they are incurring, they can probably get that covered by Boeing,” Rasch-Olsen said.<\/p>\n\n\n\n

“But\n if this situation continues into the Easter holidays, or May and June, \nthen it is a problem. They (will) need to get in new planes. And then \ncomes the costs.”<\/p>\n\n\n\n

Europeans\n tend to book their summer holidays in May, so the grounding may not yet\n affect bookings for the peak season for the airline industry, the \nanalyst said.<\/p>\n\n\n\n

Meanwhile,\n Norwegian was maintaining its order for more aircraft of the same type \nfrom Boeing, spokesman Lasse Sandaker-Nielsen said.<\/p>\n\n\n\n

Norwegian\n is expected to take delivery of dozens more of the ‘MAX’ in coming \nyears, raising the overall number to more than 70 by year-end 2021, \naccording to recent company announcements.<\/p>\n\n\n\n

Shares in the airline have now dropped 6.8 percent this week as investors worried about the impact of the Ethiopian crash.<\/p>\n\n\n\n

They fell by 4.8 percent in early trade on Wednesday but later recovered to trade up 2.7 percent by 1246 GMT.<\/p>\n\n\n\n

Norwegian\n cancelled some flights on Tuesday, and on Wednesday it cancelled at \nleast three dozen departures, its website showed, most of which were due\n to fly from airports in Oslo, Stockholm and other Nordic cities.<\/p>\n\n\n\n

The airline was booking passengers on to other flights and using other types of planes from its fleet to help fill the gaps.<\/p>\n\n\n\n

In\n a separate statement, Norwegian said it would deploy one of its larger \nBoeing 787 Dreamliner aircraft to operate its daily route from Dublin to\n Stewart airport north of New York City, replacing the grounded MAX.<\/p>\n\n\n\n

($1 = 8.6093 Norwegian crowns)<\/p>\n\n\n\n

(By Terje Solsvik and Gwladys Fouche. Additional reporting by Lefteris Karagiannopoulos; Editing by Susan Fenton and Louise Heavens)<\/p>\n\n\n\n

\"\"<\/figure>\n","protected":false},"excerpt":{"rendered":"

Norwegian Air said on Wednesday it will seek compensation from plane maker Boeing for costs and lost revenue after grounding its fleet of 737 MAX 8 aircraft in the wake of the Ethiopian Airlines crash. “We expect Boeing to take this bill,” Norwegian said<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[797,89,799,2203,1397,868,1103],"tags":[45,42,909,539,464,118,2085,160,3461,41,2545,736,2821,99,3724,1180,660,1555,3744,46,2822,412,97,1288,2120],"class_list":["post-4013","post","type-post","status-publish","format-standard","hentry","category-airline-news","category-aviation-news","category-boeing-news","category-finance-news","category-stock-news","category-transportation-news","category-travel-news","tag-45","tag-42","tag-909","tag-air","tag-aircraft","tag-airlines","tag-authorities","tag-aviation","tag-bjoern","tag-boeing","tag-cancel","tag-crash","tag-dennis","tag-dreamliner","tag-ethiopian","tag-european","tag-flight","tag-ground","tag-kjos","tag-max","tag-muilenburg","tag-news","tag-norwegian","tag-reuters","tag-safety"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4013"}],"version-history":[{"count":3,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4013\/revisions"}],"predecessor-version":[{"id":4017,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/4013\/revisions\/4017"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}