Boeing 737 MAX crisis takes a massive toll on Norwegian Air

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With 18 aircrafts grounded and 92 undeliverable orders, Norwegian Air is strongly feeling the impact of the Boeing 737 MAX crisis. The Norwegian Air Shuttle said that Boeing will have to pay for it and that they would be reimbursed for the losses they are currently facing.

Norwegian Air has reported consecutive months of falling passenger numbers, in June it dropped down by 1% to the month before. Lack of aircraft have contributed to worse on-time performance and the crisis has led to unavailability of aircraft for the airline as many orders are due. This also caused Norwegian Air to drop down in ‘Reliability Rankings’. Norwegian Air’s fleet of 18 MAX aircraft, being one of the biggest in Europe, took passengers onto profitable long-haul international air routes. They are now struck hard by the grounding of their Boeing 737 MAX fleet. The grounded aircrafts are expensive since they need to be maintained so that they can fly at any time. Besides, pilots need to be employed and loan repayments must continue. Therefore, the figures that Norwegian expects from Boeing is likely to be in millions.

Fortunately, Norwegian Air has been able to maintain its plan in order to strengthen its bottom line, they were able to remove unprofitable routes allowing them to focus on services that will make them money. Long-distance routes that are being operated by Boeing’s Dreamliner’s that carry many passengers at an excellent cost-per-seat have led to much of the airline’s growth. They were able to open new profitable routes to South America and Greece and was recently delivered with their 36th Boeing 787-9 aircraft. They had to hire wet-lease aircraft to cover the shortfall, these operations are difficult to synchronize and maintain customer expectations. A Norwegian spokesman said that the wet-lease capacity is not a part of their day-to-day operations and they have less control over it.

Norwegian Air’s website is keeping the airline’s customers updated with all issues related to Boeing 737 MAX 8. They’ve also advised travelers to check for the latest information on their flight plans.

Joel Picardo

Joel Picardo

Joel Picardo has been in the startup space for the last 5 years and has worked with startups in the cryptocurrency and digital marketing industry. He founded GeekyMint along with his co-founder SafdarAli with a mission to provide well-reseached articles in the cryptocurrency, finance, technology, blockchain, software, and startup sector

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