Norwegian’s In Trouble & Not Just because It Flies B737 MAX Jets

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You might be put off booking your next flight on Norwegian because they have a number of B737 MAX Jets in their fleet. Once the 737 takes to the air again, you will be in with a good chance of flying on one of these transatlantic and beyond.

But this is not the only problem with Norwegian. Norwegian is thought by many to have bought too many planes! Norwegian Air Shuttle ASA, has been forced to ground its 18-strong fleet of 737 Max planes following Sunday’s tragedy in Ethiopia, but this may actually be a good thing for the airline.

Chief executive Bjorn Kjos has asked Boeing to compensate the airline for flight cancellations and the cost of rerouting passengers. Analysts estimate the bill at several million kroner a day which Norwegian’s weak balance sheet should be able to cope with in the short term, provided of course the Max aircraft aren’t parked for too long.

The grounding of the plane could prevent Norwegian from receiving the 16 additional 737 Max planes it anticipated this year. Which could be a good thing for the airline. Assuming Norwegian has ordered too many planes as suggested by this article in Skift, the costs of these new planes would put enormous pressure on its finances.

So for Norwegian Airlines, some ponder that this tragedy may have helped their balance sheet in the short term, enough to keep them out of trouble.

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