Oslo - Today, Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle, announced that it has signed an agreement with Boeing and Airbus for postponement of 16 aircraft.
According to the agreements signed with both Boeing and Airbus, Norwegian delays the deliveries of 12 737 MAX jets from 2020 to 2023-2024 and the four A321LR from 2019 to 2020.
Norwegian expects the postponements will reduce the airline’s capital expenditure commitments for 2019-2020 and 2020-2021 fiscal years.
The postponement decision is part of the changed focus of the airline from growth to profitability, the company said in a statement sent to the Oslo Stock Market on February 6.
Norwegian has been in financial distress for a while after a strong growth period. Earlier this year, the airline shut down six bases in Spain, Italy, and pilot bases in Florida, Bangkok, Fort Lauderdale, and Amsterdam. Some routes were also reduced in terms of frequencies. The company explained these measures as part of a reconstruction and consolidation process after years of rapid growth.
After IAG, the International Airline Group, dropped the takeover plan for the budget carrier last month, the market value of the company fell sharply in stock markets.
On January 29, Norwegian Air Shuttle announced that it was strengthening its balance sheet through a fully underwritten rights issue of NOK 3 billion (USD 350 million) in order to increase its financial flexibility.