Norway To dump 787 Dreamliners as it ends on Long-Haul flights

This week, Norwegian Airlines announced the arrival of their infamous flights at a low price that has brought budget travelers around the world. In fact, the airline in 2019 was New York’s largest foreign carrier, carrying more than two million passengers to Europe and other destinations.

Trying to survive on COVID-19 and a sea of ​​red ink, Norway will now focus on its Scandinavian and European network. The long service in Norway failed to lead to a recession and job losses for the airline. Soon, he will also be leaving his long plane. Anyone want to buy 37 Boeing 787 Dreamliners?

Norway’s current plan is to serve Europe with 50 slim body flights by 2021. While the narrow bodies are easier to fill and cheaper to fill, this will also put Norway head-to-head with Ryanair and other air discounts. If all goes well Norway plans to increase its fleet to around 70 slim body flights by 2022.

The basic approach may not work back to the struggling airline, which has been reverted to by the stockholders and the Norwegian government again. But it is certainly bad news for Boeing. Even the figure of 70 aircraft represents just half of Norway’s average fleet of 140 aircraft. And a source close to the struggling airline confirmed that Norway has no future for the Boeing 787 general.

The Norwegian website happily notes that “with an average fleet age of just 4.6 years, Norway has one of the youngest and most fuel efficient fleets in the world. “But the airline’s struggle to survive (it is in disarray in several countries) looks like breaking up that fleet is proof, dumping the planes on a slow market. after COVID.

Norway currently has around 85 Boeing 737-800 slim body aircraft, with an additional 18 Boeing 737 MAX aircraft.

A long haul service was provided by 377 787 Dreamliners broadcasters. Norway has both 787-8 (291 seats, 8,823 miles range), and the 787-9 (344 seats, 9,196 miles.)

Norwegian Dreamliners served a dozen US cities and to European destinations (London, Barcelona Paris, Rome, Madrid, Oslo), South America (Buenos Aires, Rio) and Asian (Bangkok). Why the past tense? Norway says its entire fleet of Dreamliners has not flown since March 2020. The airline said, with a very uncertain future demand, “long haul activity is not feasible for it. Norway and these operations will not continue. ”

So it looks like all 37 Dreamliners are on the cutting block, as are several dozen 737-800 and / or 737 MAX aircraft. Most Norwegian flights are leased, creating issues for the owner-owned rental companies. But if Norway sells around 737s, at least they will be much cheaper than the big A380s.

Putting the 737 and in particular the 787 aircraft back on the market will create headaches for Boeing. Average prices for new 787-8 models run around $ 248 million, while new 787-9 is crushed at $ 292 million. (Of course, airfare is heavily negotiated.) What about a used one? Controller.com’s 787-8 in 2017 is listed at $ 122 million, with another three “Call for a price.”

As of December 2020, Boeing had built 992 787s. Norwegian Orphan Dreamliners represent nearly 4% of that total. With the dumping of 37 expensive new aircraft on the world aviation market struggling to recover from COVID there is no doubt that prices will fall further. It could also restrict manufacturing 787, which was cut four times in 19 months. The production of Boeing 787, which has reached several quality issues, is now down to just five flights per month.

Manufacturing cuts pose a bigger problem. Reuters reported that Greg Smith, Chief Financial Officer, told the Credit Suisse conference “We have a large number of 787 undelivered aircraft.” Global Flight reports that 60 is the “big number”.

But the forthcoming waste of Boeing’s Norwegian flight is only part of the “relationship problem” between the two companies.

In June 2020, Norway announced that it would finalize the company’s purchase agreements of five Boeing 787s, 92 Boeing 737 MAX aircraft and related GoldCare service agreements.

Norway is also suing Boeing for more than a billion dollars over the base of the 737-Max cases and engine on the 787. “Instead of delivering on their promises, Boeing has misled and leaked information. deliberately, has shown great neglect and clumsy production, and has made aircraft of great value and convenience at great disadvantage, which have had a devastating and deadly effect on the MAX aircraft case, “said the lawsuit, which filed with the Northern Illinois District Court in July 2019.

Norway, the filtering noted that “there are 737 MAX aircraft on the ground since the launch of this type of aircraft worldwide on 12 March 2019. This has also been a concern. [Norwegian Air Shuttle] operations and caused a great loss. In addition, Rolls-Royce Trent-powered 787 aircraft from Norway have suffered long-term reliability issues that affected reliability and led to premature and unplanned maintenance, which has caused concern activity of the Company and which caused further significant losses. ”

In November, Boeing tried to postpone a lawsuit, but it was postponed to a later date.

It’s hard to break up. Breaking the industry love affair between Boeing and Norway could be a pain for both.