Norwegian Air’s affiliates file for bankruptcy putting Boeing jet orders in question

Norwegian Air Shuttle, a major Boeing customer, saw four affiliates in Denmark and Sweden file for bankruptcy Monday, raising questions about the fate of 92 jets it has ordered.

The Oslo-based ultra-low cost airline revealed its actions in a long, emotional news release, saying the carrier received no government support in those two countries despite its pleas and the existence of similar financial aid for airlines in Norway and the U.S.

Norwegian has undelivered orders for 92 Boeing 737 Max jets ordered in January 2012, plus five 787-9 Dreamliners ordered in October 2015, according to Boeing’s orders and deliveries website.

Boeing Commercial Airplanes spokesman Bernard Choi declined to comment on Norwegian’s outstanding aircraft orders.

“We are working closely with all of our customers during this challenging time for our industry,” Choi said.

The Max was grounded around the world and airline deliveries were halted 13 months ago after two of the jets crashed, killing 346 people. Boeing’s Renton factory halted production in January.

On Boeing’s orders and deliveries web page, the jet maker offers a special accounting category for outstanding orders of 737 Max and its other jets. That category includes airline customers which are still in operation, but whose ability to pay for previously ordered jets is now uncertain or doubtful. Boeing reported that it has 328 orders like this that might not get delivered.

Boeing does not offer any break down to identify which airlines and how many jets it suspects each might not get delivered.

Still, Boeing reports it has a backlog of 4,079 Max orders as of March 31, but has faced a wave of cancellations in 2020.

Norwegian CEO Jacob Schram said his company laid off 1,571 pilots and 3,134 cabin crew and canceled deals with a crew supply company in the U.S. called OSM Aviation. OSM has offices in Fort Lauderdale and New York City.

“It is heart-breaking that our Swedish and Danish pilot and cabin crew subsidiaries now are forced to file for bankruptcy, and I’m truly sorry for the consequences this will have for our colleagues,” Schram said. “We are working around the clock to get through this crisis and to return as a stronger Norwegian with the goal of bringing as many colleagues back in the air as possible.” www.bizjournals.com