Published: Wed, August 14, 2019
Economy | By

Tui take a 46 per cent plunge over Boeing 737 grounding

Tui take a 46 per cent plunge over Boeing 737 grounding

European tourism group TUI said the grounding of Boeing's 737 MAX jets was a big burden as it reported a 46% decline in underlying quarterly core earnings (EBITA) on Tuesday.

The airline flies 6 routes from Dublin, Cork and Shannon to the United States and Canada. The strong passenger numbers that used these services at Shannon, however, proved once again the vibrant market there is for transatlantic flights in and out of this region.

"As the airline moves from growth to profitability, we have conducted a comprehensive review of our transatlantic operations between Ireland and North America and considering the grounding of the Boeing 737 MAX aircraft, we have concluded that these routes are no longer commercially viable", said Matthew Wood, SVP Long Haul Commercial at Norwegian.

Mr Dickson's comments were made after the US Senate voted 52 to 40 to appoint Mr Dickson as the aviation watchdog's administrator following the two tragic crashes involving the troubled aircraft, which killed 346 people in Indonesia and Ethiopia. The grounding is still ongoing and Boeing has blamed a fault in the software for the crashes.

Loss of capacity as a result of the groundings has forced airlines to cancel thousands of flights and lease replacement aircraft to cover deficits.

The decision will ultimately end all flights from Stewart, New York; Providence, R.I., and Hamilton, Ontario, and Dublin.

The airline also says its engaging with its 48 pilots and 86 cabin crew in Dublin to ensure that redundancies remain a last resort.

This figure will increase every day the type remains on the ground, unable to operate services for the long list of airlines who have either taken delivery of or ordered the 737 MAX from Boeing.

The fallout from the Boeing 737 Max issues continues - Norwegian ceases worldwide operations in multiple US locations.

At least 80 administrative staff for Norwegian airlines based in Ireland will not be affected by the route closures.

The Shannon Group says it will continue to work with and support its other transatlantic airline partners, Aer Lingus, United, Delta and American Airlines, to ensure the continued success of their services between Shannon and JFK and Newark airports for the NY market, as well as Boston and Philadelphia. Seymour was referring to an older model Boeing plane.

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