Aerospace & Defense

Airbus, Boeing face cancellations in Norwegian restructuring -sources

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The nose of an Airbus A380 is seen outside the factory of Stelia Aerospace, a subsidiary of Airbus, in Meaulte, France, July 2, 2020. REUTERS/Pascal Rossignol/File Photo

PARIS, Feb 23 (Reuters) - Planemakers Airbus (AIR.PA) and Boeing (BA.N) are bracing for some jet order cancellations from troubled Norwegian Air (NORR.OL) amid restructuring proceedings, industry sources said.

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.

The Irish High Court this week is hearing arguments concerning the repudiation of some of Norwegian’s liabilities including aircraft leases.

“There is a hearing ongoing and we can’t comment until that is over,” a Norwegian spokesman said.

Airbus had no immediate comment. Boeing was not immediately available for comment.

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Reporting by Tim Hepher, Victoria Klesty, Conor Humphries

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