👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Norwegian Air expects Boeing 737 MAX fleet to remain grounded until end of August

Published 06/14/2019, 08:22 AM
Updated 06/14/2019, 08:25 AM
© Reuters. FILE PHOTO: Bjoern Kjos, CEO of Norwegian Air Shuttle ASA, attends a press conference presenting quarterly report of the company, in Oslo
BA
-

PARIS (Reuters) - Norwegian Air expects Boeing's 737 MAX aircraft to remain grounded until at least the end of August, missing the European summer season, CEO Bjoern Kjos said on Friday.

“If you ask Boeing (NYSE:BA) they still say June or July,” Kjos said at the Paris Air Forum. “But we’re already in mid-June - we've planned for the MAX to be out until the end of August.”

More than 300 Boeing 737 MAX jets have been grounded worldwide after two fatal crashes in Ethiopia and Indonesia killed nearly 350 people. Some airlines now expect the plane to remain out of action until the end of 2019.

Norwegian, which operated 18 of the planes, has said the grounding will raise its costs by up to 500 million Norwegian crowns ($58 million). The low-cost, long-haul operator has delayed disposal of older Boeing 737 models or prolonged leasing contracts while it waits for their MAX replacements.

Boeing is awaiting a decisions by the U.S. Federal Aviation Administration on software improvements it proposed after the crashes and whether to require additional pilot training before flights can resume.

If more training is ordered, a shortage of simulators means that “it might be much longer” before commercial flights resume, Kjos said. “For some operators it could take up to a year.”

As a customer of Boeing’s GoldCare maintenance program, however, the CEO said Norwegian might not have to wait that long.

© Reuters. FILE PHOTO: Bjoern Kjos, CEO of Norwegian Air Shuttle ASA, attends a press conference presenting quarterly report of the company, in Oslo

“We’d hope to be at the front of the queue,” he said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.