Cash-strapped Norwegian has postponed delivery with Airbus of A320neos and A321LRs in a move that will save the airline US$570 million in capital expenditure commitments in 2019 and 2020.
Arctic Aviation Assets DAC,a subsidiary of Norwegian revealed that it had reached an agreement with Airbus for the rescheduling of part of the order book. The rescheduling is a result of a dialogue between the company and Airbus the past months.
Norwegian said: “The postponements are in line with the Company’s strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability.”
The announcement was an extension of the information provided in the stock exchange announcement ‘Norwegian strengthens its balance sheet through a fully underwritten rights issue of NOK 3 billion’ on 29 January’ where postponement of aircraft deliveries was highlighted as a measure to reduce capital expenditures, in addition to aircraft divestments.