Renting Airplanes To Replace Grounded 787s Cost The Carrier Money, It Says

Budget carrier Norwegian Air Shuttle says the cost of renting replacement airplanes while its Dreamliners were down for repairs ate into its 3rd quarter net profits.

The airline, Europe's third-largest budget carrier by passenger volume, had purchased the new Boeing's in an effort to expand into the long-haul market with routes to the U.S. and Asia. It has acquired two of Boeing's composite-construction airplanes to fly those routes.

The Wall Street Journal reports that in its 3rd quarter earnings report, the airline showed a 31 percent drop in net profits, which airline executives blame on the cost of renting replacement airplanes while the Dreamliners were out of service for repairs, as well as the cost of additional fuel, and providing food and accommodations for delayed passengers.

Chief Executive Bjorn Kjos pointed directly at the Dreamliner for eating into the bottom line. "Our results this quarter are significantly affected by the additional costs associated with replacement aircraft for the Dreamliner,” he said.

The loss came despite a 16 percent rise in revenue for the same period, according to the airline. The airline is reportedly planning to talk with Boeing about compensation for the loss. The carrier is still planning to move forward with its plans to acquire another five Dreamliners by the end of 2014.

FMI: www.norwegian.com/en, www.boeing.com