newstodate.aero
Apr 04, 2019 (newstodate): Norwegian is relying on short-term wet-lease agreement with capacity providers to cover the demand for replaceable the grounded Boeing 737 MAX aircraft fleet.
So far, the carrier has leased in aircraft from five providers including Poland's Enter Air, Denmark's Jet Time, the Dutch Corendon, and Lithuania's Avion Express to provide flights on European routes, while Spain's Evelop has been contracted to operate flights from Ireland to the USA.
The problems with the grounding of the MAX fleet come on top of Norwegian's struggle to keep in the air after heavy losses, partially relieved through the recent emission to bring in fresh operating capital.
The carrier has 11 MAX 8 aircraft in the fleet, and their grounding poses a major challenge to its ability to maintain scheduled services.
As a result, Norwegian has decided to delay potential sales of six Boeing 737-800 aircraft and use available 787 Dreamliner capacity on high-volume routes, which will add flexibility.
Norwegian has more than 110 Boeing 737–800 aircraft in its fleet, which is not affected by the temporary suspension.
It also has some available capacity in the 787 Dreamliner fleet that has been utilized on several high-volume routes.
The Company's efforts to wet-lease aircraft to fill the remaining capacity gap is a challenge in a market where other MAX 8 operators facing problems strive to source available Boeing 737-800 and similar aircraft for lease.
Another effect of the current abnormal state of affairs is rising leasing premiums reflecting the volatile demand-supply condition in the market.
So far, the carrier has leased in aircraft from five providers including Poland's Enter Air, Denmark's Jet Time, the Dutch Corendon, and Lithuania's Avion Express to provide flights on European routes, while Spain's Evelop has been contracted to operate flights from Ireland to the USA.
The problems with the grounding of the MAX fleet come on top of Norwegian's struggle to keep in the air after heavy losses, partially relieved through the recent emission to bring in fresh operating capital.
The carrier has 11 MAX 8 aircraft in the fleet, and their grounding poses a major challenge to its ability to maintain scheduled services.
As a result, Norwegian has decided to delay potential sales of six Boeing 737-800 aircraft and use available 787 Dreamliner capacity on high-volume routes, which will add flexibility.
Norwegian has more than 110 Boeing 737–800 aircraft in its fleet, which is not affected by the temporary suspension.
It also has some available capacity in the 787 Dreamliner fleet that has been utilized on several high-volume routes.
The Company's efforts to wet-lease aircraft to fill the remaining capacity gap is a challenge in a market where other MAX 8 operators facing problems strive to source available Boeing 737-800 and similar aircraft for lease.
Another effect of the current abnormal state of affairs is rising leasing premiums reflecting the volatile demand-supply condition in the market.