Thursday, February 13, 2014

Norwegian Air Shuttle to lease another 4 787 Dreamliners despite aircraft growing pains

Norwegian Air Shuttle announced on Thursday the lease of four more Boeing 787 Dreamliner aircraft, despite a series of technical hitches with the planes.

The contract, which brings Norwegian's planned Dreamliner fleet to 14, was signed with the US aircraft leasing company International Lease Finance Corporation (ILFC) but no financial details were released.
 
The aircraft -- which can accommodate up to 20 percent more passengers over longer distances than the Boeing 787-8 planes the company currently operates on long-haul routes -- are due for delivery in 2017 and 2018.
 
Norwegian, one of the few low-cost airlines to have ventured into the long-haul segment, already operates three Dreamliners, which have been beset by a series of technical problems and delays since the company launched routes between Scandinavia, the US and Thailand.
 
The airline announced on Thursday that it had made a loss of 196.8 million kroner in the fourth quarter (23,6 million euros, $32.27), clocking up 45 million kroner in costs related to its long haul business.

Overall the long-haul launch cost the company 216 million kroner in 2013.
However it still reported a net profit for 2013 of 318,7 million kroner compared to 456,6 million kroner the previous year.

On Wednesday, Norwegian announced that it had obtained an Air Operator's Certificate from Irish authorities, paving the way for the company to run its long-haul business from Ireland, which unlike Norway is a member of the European Union.

The Irish licence gives Norwegian "access to future traffic rights to and from the EU", the airline said in a statement.

Air transport unions claim that the airline intends to use the licence to bypass Norway's labour legislation -- which restricts foreign staff on Norwegian aircraft -- and hire cheaper workers in other countries.

(Yahoo News)

No comments: