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Norwegian Air Growth Clipped as Boeing Strike Roils Carriers

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A worker pickets outside the Boeing facility in Renton, Washington, US, on Oct. 22. Photographer: David Ryder/Bloomberg (David Ryder/Bloomberg)

(Bloomberg) -- Norwegian Air Shuttle ASA’s growth is expected to slow next year as a strike at Boeing Co. deprives the low-cost carrier of new jets, adding to an industrywide bottleneck that’s hurting airlines globally.

Capacity growth will be less than the 13% the airline is targeting for this year, Norwegian said in a statement as it reported earnings Friday. Its fleet should rise to around 90 jets by the middle of next year and to 97 a year later, versus 86 — all Boeing 737s — at the end of the third quarter. 

“The strike among Boeing union members from September is expected to exacerbate the delivery delays,” Norwegian said. The airline hasn’t received any aircraft during the third quarter.

Boeing has so far failed to overcome a work stoppage at its main factories in the Seattle area after employees voted not to ratify the latest tentative contract offer earlier this week. As a result, the US planemaker isn’t producing any civil aircraft besides the 787 Dreamliner, which is made at a different site that doesn’t have union representation. 

Norwegian said that its upcoming deliveries are now delayed by more than a year. 

The lack of new jets also means Norwegian is paying more to lease planes. The company said it’s evaluating its lease extensions for the next two years for additional Boeing 737 NG models. The dearth of aircraft also means Norwegian has less capacity to drive expansion outside its Nordic home market, it said.

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