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Norwegian Delays A320neo/A321neo Deliveries

Norwegian Delays Airbus Deliveries

2019 04 11

2019 04 11

Norwegian has reached an agreement with Airbus to delay delivery of some A320neo and A321LR aircraft.

The low cost carrier said the postponement of “part of the order book” is expected to reduce its capital expenditure commitments by about USD$570 million during 2019 and 2020.

The Airbus order website shows that Norwegian has outstanding orders for 63 A320neos and 30 A321neos. The airline has already delayed delivery of twelve Boeing 737 MAX 8s from 2020 to 2023 and 2024, and four Airbus A321LRs from 2019 to 2020. The latest delay is on top of the previously announced postponements.

The delays are “in line with the company’s strategy of capitalising on the scale built up over the last few years and the changed focus from growth to profitability,” Norwegian said.

The airline raised NOK3 billion kroner in February through a rights issue to strengthen its balance sheet as it brings to an end a period of frenetic expansion and concentrates on profitability after two years of net losses.

In a January investor presentation, Norwegian said its aim for the 2018-2020 period is to “Maintain short haul within Europe, grow medium/long haul between Europe and the rest of the world and exploit new/underserved markets.”

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