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Norwegian loses Dkr93 million on Dreamliner’s problems

Thursday, 24 October 2013
Cost of delayed to passengers and rental of replacement planes has now been accounted and shows that the cost to Norwegian, the budget airliner as a result of failure to its Dreamliner project has been higher than expected.

The problems with Norwegian's new Dreamliner aircraft placed on long-haul routes to New York and Bangkok has now been accounted to costs the low-cost airline operator expensive.
This has been caused by cost of delays and cancellations accounted to reach Dkr 93 million and has hit the company, according to the company’s account in the third quarter, reports Danish Radio.
Norwegian dream liner
The cost also includes the cost of hiring replacement planes, additional fuel and the cost of hotel, food and drink for delayed passengers.
Yet Norwegian's CEO Bjorn Kjos, stress that the company's growth strategy is working. He links the disappointing result with the heat of summer, which got more Scandinavians to stay home for holidays, Danish radio and television said.
Six million passengers travelled with Norwegian in the third quarter. That's 800,000 more than the same period last year and an increase of 16 percent.

Net profit was lower than expected - sales came to nearly Dkr4.5 billion - equivalent to a growth of over 15 percent from the same quarter of 2013. It was exactly what analysts had expected, according to analysts’ consensus summary.
But the bottom line ended up with a pre-tax profit of almost Dkr554 million, which was well below analysts’ expectations.
Norwegian bought modern Dreamliner planes from Boeing to fly long-haul flights from Scandinavia to Asia and the U.S.. But generally the experience has not been the best for the company.
By Scancomark.com Team


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