Norwegian Air Expects Boeing To Foot The Bill For Aircraft Groundings

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Norwegian Air is demanding Boeing compensate the airline after over a dozen of its 737 Max 8 airplanes were grounded following a deadly Sunday crash that killed 157 people.

The airline asked the corporation Wednesday to pay for both the costs and revenue loss that has resulted from the grounding of many of its planes. “We expect Boeing to take this bill,” Norwegian Air said in a statement, according to Reuters.

“It’s quite obvious that we will not take the cost related to the new aircraft that we have to park temporarily. We will send this bill to those who produce this aircraft,” Norwegian Air CEO Bjoern Kjos said.

Norwegian Air has 18 of the 737 Max 8 planes and has ordered more than 100 of the aircraft models, CNN reported Wednesday. Reuters reported the airline will have over 70 of the 737 Max 8 planes by the end of 2021.

“The little extra costs they are incurring, they can probably get that covered by Boeing,” analyst Preben Rasch-Olsen said, according to Reuters. “But if this situation continues into the Easter holidays, or May and June, then it is a problem. They (will) need to get in new planes. And then comes the costs.”

Aviation authorities in Europe ordered the grounding of the 737 Max aircraft Tuesday. U.S. President Donald Trump also announced Wednesday that he is grounding all Boeing 737 Max planes.

The orders come after an Ethiopian Airlines 737 Max 8 plane crashed Sunday shortly after takeoff, killing everyone on board. A Lion Air Boeing airplane also crashed in October 2018, in a similar series of events in which automatic controls faultily forced the plane into a nose dive, causing the pilots to lose control.

Numerous airlines have also announced that they won’t fly any of the 737 Max planes until authorities determine what went wrong and determine other planes won’t suffer the same fate, CNN reported.

“What happens next is in the hands of European aviation authorities. But we hope and expect that our MAXes will be airborne soon,” Kjos added.

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