Norwegian Air Shuttle ASA is holding discussions with Boeing Co.
following a series of delays during the holidays caused by
technical problems with its Dreamliner jetliners, further denting
the airline's reputation as a newcomer to the long-haul market.
"Both we and Boeing agree that there has been too many
problems," Norwegian spokeswoman Charlotte Holmbergh Jacobsson said
Tuesday. Norwegian's third-quarter earnings were damaged by
Dreamliner-related delays and the airline has in the past taken two
of the jetliners out of service for fixes.
"This is naturally unacceptable," said Ms. Holmbergh Jacobsson,
adding that the company has yet to tally the total costs generated
by the delays. Norwegian's CEO, Bjorn Kjos, and other company
executives are in the U.S. to meet with Boeing representatives. Mr.
Kjos has been a strong supporter of the Dreamliner program, but the
early problems with the aircraft have been a recurring
headache.
"We share in Norwegian's disappointment in the airplane's recent
performance and we are addressing that as expeditiously as
possible," a Boeing spokeswoman said, adding that while the airline
has had recent disruptions, the 787's performance is "in line with
most other new operators." The spokeswoman declined to comment on
any possible compensation talks with the airline.
The most recent troubles left hundreds of Norwegian's passengers
stuck for up to two days at airports in New York and Bangkok as one
of its Dreamliners experienced technical problems. The delays have
been the subject of heavy media attention in Norway, its most
important market.
Norwegian, Europe's largest discount airline by passengers after
Ryanair Holdings PLC and EasyJet PLC, is making a push into the
long-haul segment via new routes to the U.S. and Asia. The
company's ambitious long-haul operations are currently served by
only three Dreamliner aircraft, which makes flights vulnerable to
delays should an aircraft be unavailable.
Repeated technical problems with the Dreamliner aircraft
resulted in a sharp fall in Norwegian's third-quarter net profit,
as the cost of temporarily replacing the aircraft offset higher
revenue. The airline booked third-quarter costs of 101 million
Norwegian kroner ($16.4 million) for leases of replacement
aircraft, extra fuel, and providing accommodation, food and drink
for delayed passengers.
According to Norwegian, these latest Christmas holiday delays
added even further costs to the list, including hotel nights for
passengers and, eventually, the charter of another airline to bring
passengers to their destination.
Norwegian is expecting another three Dreamliner jets to be
delivered from Boeing this year. Additional Dreamliners are set for
delivery in 2015 and 2016, and negotiations are continuing for more
beyond that.
Jon Ostrower in Chicago contributed to this article.
Write to Christina Zander at christina.zander@wsj.com
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