Norwegian exposes Airbus orders for almost five billion

Norwegian postpones the order of a number of Airbus aircraft as part of the airline’s program to cut costs, the company reports in a stock exchange announcement.

In February, Norwegian entered into a similar agreement with Boeing as part of reducing the company’s obligations. At that time, it was deferred delivery of 12 Boeing 737. An agreement to purchase four Airbus aircraft from SAS was also postponed.

It is Norway’s wholly owned subsidiary Arctic Aviation Assets DAC that has negotiated with Airbus. The company is based in Ireland and manages the Norwegian Airplane.

– The postponements are part of the strategy of extracting profits from the capacity that has been built up in recent years, and the company’s changed focus from growth to profitability is stated in the stock exchange announcement.

In total, the agreement will reduce Norway’s capital obligation by $ 570 million in 2019 and 2020, about NOK 4.85 billion by today’s exchange rate.

According to Norwegian, the postponements of the flight orders are part of the same plan, which also meant the issue of NOK 3 billion in January. The same plan also includes the sale of aircraft.

Norwegian would actually receive 4 Airbus A321LR (Long Range) this year and another 12 in 2020, writes E24 . Following the agreement on Wednesday, they will now receive 12 aircraft in 2020 and then 22 in 2021.

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