Norwegian Airlines yesterday joined a number of airlines and nations grounding the Boeing 737 MAX. The news comes after two similar accidents involving the type in just six months. Now, the carrier is insisting that the manufacturer pays compensation after Norwegian grounded Boeing’s aircraft. While multiple airlines and aviation authorities continue to ground the Boeing 737 MAX, both Boeing and the FAA have so far refused to do so. They argue that the aircraft is safe to fly, while the FAA says that nobody has passed them data that would warrant action. Why is the 737 MAX being grounded? The Boeing 737 MAX has been involved in two fairly similar accidents in the space of six months. While the accidents have yet to be conclusively linked, there do appear to be some striking similarities. Both aircraft crashed shortly after takeoff. In the case of the Lion Air incident, this was caused by the nose being trimmed down by on board technology. Concerns are that a similar fault was the cause of the Ethiopian Airlines accident, and that the aircraft has a fundamental design flaw. However, until the investigation has been completed, this is nothing more than speculation. When it comes to aviation safety, erring on the side of caution is a good strategy, which is what many carriers and authorities have decided to do. Can Norwegian afford to ground the aircraft? The decision by Norwegian to ground the Boeing 737 MAX will not have been taken lightly. They took the proactive step of taking the MAX out of service of their own free will, although subsequently they would have had to anyway. Shortly after Norwegian announced their grounding, the European Union Aviation Safety Agency banned 737 MAX operations within the EU completely. Earlier in the year, Simple Flying reported that Norwegian was in financial difficulties, and in January the airline was looking to raise $350m. Grounding these aircraft will clearly be costly for the airline financially, however, safety is always the priority, and must come before profit. Will Boeing provide compensation? In a statement issued to RTE, Norwegian have said, “We expect Boeing to take this bill”. Whether Boeing will provide Norwegian compensation is an interesting question. For starters, Boeing is yet to ground the aircraft itself. It could argue that as they themselves didn’t deem the aircraft unsafe, no compensation is due. In the event that Boeing provides Norwegian with compensation, every other 737 MAX operator would also argue that they are entitled to payment too. This could end up costing Boeing dearly, especially as they continue to argue that the aircraft is safe. Whether Boeing will pay Norwegian’s bill is yet to be seen. Simple Flying has approached representatives of both Norwegian and Boeing for comment. Do you think Boeing should compensate airlines for grounding the aircraft? Let us know in the comments down below!<doc-sep>Norwegian Air's shares fell sharply today as investors worried over weaker-than-expected passenger income and the potential impact of the crash of an Ethiopian Air Boeing 737 MAX 8 passenger jet. While Norwegian said its 'MAX' aircraft fleet remained in operation, China's aviation regulator grounded nearly 100 similar jets operated by the country's airlines. Norwegian Air had 18 'MAX' jets in its fleet of 164 aircraft at the end of 2018. It is expected to take delivery of dozens more in coming years, taking the total to more than 70 by the end of 2021, the company has said in recent announcements. The move by China, and the possibility the ban could spread to other countries, was the main point to focus on for investors. Ethiopia also halted the use of the 'MAX', as did Cayman Airways, even though aircraft maker Boeing BA.N said it saw no need to change its guidance for use of the plane. Norwegian's shares fell 8.2% in early trade before a partial recovery to close 6.9% lower. The Oslo-based carrier has raised 3 billion Norwegian crowns ($345m) from shareholders in recent months and said it would cut costs and curb its rapid growth to regain profitability. Norwegian, which has bet heavily on the transatlantic market, last week completed a share issue first announced in January, and said demand had exceeded its sale by 110% as the deep discount on offer attracted investors. "With a stronger financial position and lower cost going forward, we are well positioned to continue to attract new customers, not least in the long-haul market," chief executive Bjoern Kjos said. Norwegian's yield, a measure of revenue per passenger carried and kilometres flown, grew to 0.32 Norwegian crowns from 0.31 crowns a year earlier, while a Reuters poll expected a rise to 0.33 crowns. Its capacity expansion, as measured by available seat kilometres (ASK), peaked at 51% growth year-on-year last June but has since declined, hitting 15% in February, less than the 19.2% that analysts forecast. Load factor, a measure of how many seats are sold on each flight, fell to 81.5% for the month, beating a forecast of 80.6% but down from 84.3% a year earlier. In a further boost to its profits and balance sheet, Norwegian said its fuel hedge contracts had so far this year resulted in gains of 917 million Norwegian crowns, partly reversing losses sustained last year. Aer Lingus and British Airways owner IAG, which in 2018 attempted to buy Norwegian, last week said it would not rule out another bid but added that it was unlikely.<doc-sep>
Several European aviation authorities have recently banned Boeing 737 MAX aircraft from their airspaces in wake of Sunday's deadly crash of a passenger plane of the same model in Ethiopia. A Boeing 737 Max of Norwegian airlines en route to Tel Aviv changed its course and has returned to Stockholm, Aftonbladet reported. The plane reportedly landed at 17:00 local time (4:00 p.m. GMT). The press service of Norwegian has told Sputnik that the airline decided to ground all its Boeing 737 MAX aircraft and return the one that had departed for Tel Aviv from Stockholm to the airport, based on European safety advice issued after a deadly crash in Ethiopia. "We have taken the decision to ground all our 737 MAX aircraft based on the recent European safety advice. So that aircraft [bound for Tel Aviv] would be returning to where it took off from", the press service said. ​READ MORE: India's Jet Airways Stops Flying Its Boeing 737 Max After Deadly Ethiopia Crash Earlier the same day, the airline Norwegian said in a statement that it would temporarily ground its Boeing 737 MAX 8 passenger jets at the advice of European regulators. The company operates 18 "MAX" passenger planes and is expected to acquire dozens more in coming years, increasing the overall number to more than 70 by the year-end of 2021, Reuters reported, citing recent announcements by the airline. The crash involving Ethiopian Airlines Flight ET 302 occurred in the morning of 10 March, minutes after the Nairobi-bound plane took off from the Ethiopian capital of Addis Ababa. All 157 people from over 30 countries who were on board the Boeing were killed. The cause of the accident remains unknown. According to the airline, the plane was well-maintained.