Airbus SE logo

AIR - Airbus SE News Story

€96.56 0.7  0.7%

Last Trade - 12/05/21

Sector
Industrials
Size
Large Cap
Market Cap £64.71bn
Enterprise Value £66.99bn
Revenue £42.72bn
Position in Universe 14th / 849

Norwegian Air and Airbus agree terms to end jet deliveries, court is told

Wed 24th February, 2021 1:22pm
DUBLIN, Feb 24 (Reuters) - Norwegian Air  NORR.OL  and jet
maker Airbus  AIR.PA  have agreed on terms to repudiate the
carrier's contract for new aircraft, lawyers representing the
two firms told Ireland's High Court on Wednesday.
    Norwegian last year won protection from bankruptcy in both
Norway and Ireland, where most of its assets are registered, and
is aiming to emerge with fewer aircraft and less debt as it
plots a future beyond the COVID-19 pandemic.
    Under a multi-year deal signed in 2012 and revised several
times since, Airbus was to deliver 100 jets to Norwegian, and
according to the aircraft maker's financial filings the company
still has 88 narrow-body jets on order.  urn:newsml:reuters.com:*:nL1N2KT0W6
    "We have agreed, judge, in the last short while, the terms
of a consent order," Norwegian Air lawyer Brian Kennedy told the
court.
    Among the terms, Airbus will keep any prepayments it has
received and will still be owed 600,000 pounds ($847,800) by
Norwegian, he said.
    The deal comprised both Norwegian Air and its asset-owning
subsidiary Arctic Aviation, Kennedy said, although he did not
specify the number of aircraft involved.
    A lawyer representing Airbus confirmed to the court that the
two sides had reached an agreement.
    Prior to the COVID-19 pandemic, Norwegian had contractual
commitments amounting to $9.55 billion for the purchase of
Boeing  BA.N  and Airbus  AIR.PA  aircraft from 2020 to 2027,
according to the carrier's financial filings.
    Last June however, Norwegian unilaterally terminated its
remaining orders with Boeing for 97 aircraft and sought
compensation for the grounding of the Boeing 737 MAX jets and
technical problems with 787 Dreamliners.  urn:newsml:reuters.com:*:nL8N2E66NS
    Boeing has contested the move and also made counterclaims
against Norwegian, documents filed by the airline show.
($1 = 0.7077 pounds)

 (Reporting by Graham Fahy in Dublin and Terje Solsvik in Oslo;
editing by Jason Neely)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.