Norwegian acquires 50 Boeing 737 MAX 8 aircraft

Albina
1 min read
Jun 1, 2022 10:31:27 AM

#NordicNews on air traffic

Norwegian purchases 50 Boeing 737 MAX 8 planes

Norwegian Air Shuttle ASA and Boeing have reached an agreement in principle for the purchase of 50 Boeing 737 MAX 8 aircraft. These 50 planes are to be delivered over the period of 2025 to 2028, which coincides with the end of existing leases, resulting in a limited increase in the size of the company's aircraft fleet. The two parties aim to finalise and sign the definitive agreement by the end of June 2022.

Additional options to purchase 30 aircraft are also included in the agreement. By using positive cash flow from operations, the company intends to pay off the outstanding upfront payments. The company will own the majority of the aircraft, ensuring an optimized and balanced financing structure. Upon completion of these arrangements, Norwegian expects a net profit of about NOK 2 billion.

Svein Harald Øygard, Chair of the Board of Norwegian, describes this purchase as “(...) a landmark deal that sets out a path whereby Norwegian will own a large share of its fleet. This will result in lower all-in costs and increased financial robustness, enabling us to further solidify our Nordic stronghold. The deal also allows us to serve our customers with state-of-the-art aircraft that can run increasingly on sustainable aviation fuel.”

By 2030, the company plans to reduce emissions by 45 per cent by using the 737 MAX 8, which is approximately 14 per cent more fuel efficient than previous generations.

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