Norwegian Air subsidiary postpones B737 MAX and A321LR

Norwegian Air Shuttle subsidiary Arctic Aviation Assets (AAA) has signed an agreement with Boeing for postponement of 12 B737 MAX 8s from 2020 to 2023 and 2024. The postponement is expected to reduce the Company’s capital expenditure commitments related to pre-delivery payments in 2019.

Additionally, capital expenditures for 2020 will be significantly reduced as AAA has further signed an agreement with Airbus for postponement of four A321LR aircraft from 2019 to 2020. The postponement is expected to reduce the Norwegian’s capital expenditure commitments in 2019.

The fleet adjustments follow the recent sale of two A320neos. The aircraft were leased out and thus not operated by the Norwegian, and classified as Assets Held for Sale in the balance sheet at 31 December 2018. Delivery will take place during February 2019. The transaction is expected to increase the Norwegian’s liquidity by US$26 million after repayment of debt and have a positive equity effect.