Norwegian is keen to settle its Boeing 737 MAX compensation claim before the new year, according to a podcast. The airline has a total of 110 Boeing 737 MAX aircraft on order, with just 18 delivered. As a result, the aircraft’s grounding has had a noticeable effect on the airline.
A lot of focus has been placed on the effect of the 737 MAX grounding on Boeing. However, airlines are also suffering, perhaps even more so. Airlines have planned their futures around the 737 MAX. Not having it means they are forced to improvise and cut back on their plans. This can end up being rather costly.
What’s the deal?
It seems as though the more Boeing 737 MAX aircraft an airline has on order, the harder the grounding has been on them. Take Ryanair, for example. It had planned to accept its first Boeing 737 MAX aircraft shortly after the grounding began. It was then due to receive a steady stream of the aircraft thereafter.
As such, the airline began hiring new pilots and expanding its network of routes and bases in order to grow as each aircraft was delivered. Instead, the airline has been faced with a different reality. Ryanair has not been able to grow as expected. This, in turn, has forced it to announce base closures. Additionally, in August, Ryanair CEO Michael O’Leary warned that the airline had 900 too many pilots.
What about Norwegian?
With a total 737 MAX order of 110 aircraft, Norwegian has noticed the absence of the type from its fleet. In fact, in June the airline noticed a drop of 1% in its passenger numbers. The airline was forced to wet-lease aircraft as it was also dealing with the Rolls Royce Trent 1000 problems, affecting its other aircraft, the Boeing 787.
Additionally, the carrier was forced to pull the plug on its transatlantic services from Ireland earlier this year. According to a press release at the time, the decision was influenced by the lack of available aircraft due to the 737 MAX grounding.
According to Reuters, Norwegian’s acting Chief Executive, Geir Karlsen, has said:
“The dialogue (with Boeing) has been ongoing since summer and we hope to come to an understanding before the end of the year. It’s about compensation and also about a new schedule of plane deliveries, as Boeing obviously can’t deliver in line with the contract … it’s a huge challenge for Boeing, and at the same time we also want the best possible outcome for ourselves.”
Do you think Norwegian will secure a reasonable compensation for the Boeing 737 MAX? Let us know your thoughts in the comments!