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Norwegian Scrubs $10.6 Billion Deal in Threat to Boeing Max

As part of the rescue, Norwegian plans to shrink its fleet from its current 160 aircraft. It’s also put a halt to most of its long-haul flights until April 2021. This month, the carrier said it would restart 76 routes in Europe as travel restrictions were eased, allowing it to tap into the usually lucrative summer season when millions of Europeans fly.

Talks with Boeing have “not led to an agreement with a reasonable compensation,” Norwegian said in the statement. The aircraft are worth at least $10.6 billion based on list prices, before customary discounts.

Norwegian is still seeking to work out an agreement with Boeing on compensation, a person familiar with the matter said. The carrier hasn’t decided whether to continue using the 18 737 Max aircraft that it already has in its fleet once the plane is re-certified, said the person, who asked not to be named citing confidentiality. Norwegian had earlier planned to use the Max on short-haul as well as trans-Atlantic routes that it no longer plans to pursue, the person said.

“We are not going to comment on commercial discussions with our customers,” Chicago-based Boeing said in a statement. “Norwegian Air Shuttle is a longstanding Boeing customer. As with many operators dealing with a very challenging time, we are working on a path forward.”

Norwegian is flying only 13 domestic flights operated by eight aircraft. The airline will increase capacity to 20 planes, adding routes to European cities including London, Paris and Barcelona. It’s also bringing back about 600 pilots and cabin crew from furlough.

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