Having stated that it would not return the 737 MAX to its fleet, Norwegian has indicated that it’s a case of never say never when it comes to new technology aircraft. The airline has recently leased an additional 13 737-800s for its fleet, to be delivered by Q1 2022. The agreement notes that these aircraft can be substituted for ‘new technology’ jets – i.e., the 737 MAX or A320neo.

Never say never

Norwegian’s relationship with the 737 MAX has been a rocky ride. It had received a total of 18 of the new generation Boeing narrowbodies through the second half of 2017 and into 2018. But then, of course, the jet was grounded for an extended period of time, beginning in March 2019.

For a relatively small airline like Norwegian, this was an inconvenient blow. It had been keen to phase out its older 737-800s in favor of the more fuel-efficient MAX but was unable to progress with its plan without the new jets in service. Adding to its woes were issues with the 787 Dreamliner, which saw it leasing out aircraft like the HiFly A380 to make up for lost capacity.

As the airline’s finances reached breaking point and it progressed through its restructuring, it emerged that Norwegian was not keen to operate its whole fleet of MAX aircraft in the future. It had already moved to cancel the rest of the 100-plane order with Boeing, and had noted that at least 12 of the type would not return to service. Then, in March this year, the airline’s chief financial officer, Geir Karlsen, stated that none of the beleaguered MAX would fly again for Norwegian.

EASA, Boeing 737 MAX, Recertification
The airline has been undergoing restructuring as part of its 'examinership' under Irish law. Photo: Vincenzo Pace | Simple Flying

It was a bold move, and with the Dreamliners leaving also, it left the airline with a fleet of purely Boeing 737-800s, 51 of them to be precise. These average under nine years of age, with some as young as three or four, but a number also over a decade old. But a recent stock market filing by the airline indicates that it has not entirely ruled out operating the MAX in the future.

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More -800s, with flexibility for new generation additions

At the end of October, Norwegian announced that it had entered into agreements in principle to lease an additional 13 Boeing 737-800s for its fleet. It noted that these would be used aircraft, with lease terms running from five up to eight years, depending on the aircraft age. They are scheduled to begin delivering in the fourth quarter of this year, through to the first quarter of 2022.

Interestingly, the announcement also notes that Norwegian could switch some of these orders out for new technology aircraft. Specifically, it says,

“Norwegian has the right, under some of the leases, to substitute the subject 737-800 NG aircraft for new technology narrow-body aircraft from either Boeing or Airbus. This will enable Norwegian to continue its focus on offering the most environmentally friendly travel options for our customers.”

Norwegian Air Boeing 737 Max 8 Aircraft seen at the Krakow
What will not be returning are Norwegian's 737 MAXs. Photo: Getty Images

This would suggest that Norwegian recognizes that, for replacing its older 737-800s, there is only one way to go. The MAX could yet be a part of the Norwegian fleet, which begs the question of why it didn’t simply hold on to its existing 18 in the first place?

It’s likely that, given those were brand new aircraft signed for before both the global travel downturn and the grounding, the leasing arrangements were not the most attractive. Leasing a MAX in today’s environment is likely to be far more favorable than it once was, and could tempt Norwegian to take on Boeing’s flagship narrowbody.

However, it’s also interesting that the airline names Airbus as a potential supplier of new technology jets. Before it hit crisis point, Norwegian had signed for 88 new Airbus narrowbodies from the A320neo family, including 30 A321LRs. Reinstating this order after the previous cancellation would be a difficult conversation to have, but it’s not out of the question.

Of the two, the MAX certainly makes more sense for the new Norwegian, given its renewed focus on low-cost, short-haul flying. A single fleet type would stick to the low-cost bible, but we’ll have to wait and see which way it jumps in the end.