• Southern California Logistics Airport, Victorville, Aircraft Graveyard
    Norwegian
    IATA/ICAO Code:
    DY/NOZ
    Airline Type:
    Low-Cost Carrier
    Year Founded:
    1993
    CEO:
    Geir Karlsen
    Country:
    Norway

Norwegian today announced that it made a deal to acquire 50 Boeing 737 MAX 8 aircraft. The twinjets are expected to arrive at the low-cost carrier's fleet between 2025 and 2028, coinciding with scheduled lease expiration dates.

Substantial deal

Another 30 options are included in this 737 MAX agreement. The deal is set to be fully finalized by the end of next month as the finer details are worked out for the Boeing narrowbody.

Norwegian will use funds from its operations to finance pre-delivery payments. A considerable portion of the arrivals will be wholly owned by the airline. All in all, the firm is anticipated to report a net gain of around NOK 2 billion ($200 million) after the agreements are concluded.

Geir Karlsen, CEO of Norwegian, shared the following in a company statement:

“The overall terms achieved are attractive for Norwegian, and the deal fits well with our long-term fleet strategy and route program. It will enable us to serve our customers with modern fuel-efficient aircraft with the latest technology, significantly reducing our carbon footprint. The deal will also strengthen the company’s equity considerably, further solidifying Norwegian’s financial position.”

Norwegian 737MAX Freddie Laker tail fin (1)
Photo: Norwegian
 

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Savings to be had

Svein Harald Øygard, Chair of the Board of Norwegian, also spoke about the landmark agreement. He noted that the move will allow his airline to own a large share of its fleet. Subsequently, the company will be able to reduce costs and boost its financial mobility.

There are also, of course, efficiency benefits to be had with the MAX. Notably, the MAX 8 is around 14% more fuel-efficient than previous-generation models. This factor will help the airline meet its goal of cutting down on emissions by 45% by the time this decade is over.

150717IAGNORA 737 MAX Norwegian
Photo: Norwegian

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A new era

Norwegian entered the 737 MAX into service in March after initially suspending services with the aircraft in March 2019 as part of the global grounding of the type. The airline held 18 MAX 8s at one point, but they were returned to lessors as part of a restructuring plan.

The MAX has been returning slowly, and in February, Norwegian announced that it would lease ten new units. Now, the carrier is scaling up its holdings, looking to have greater autonomy with the plane.

Even in the year before the pandemic, Norwegian cut more than 80 routes. The pandemic further shook up operations, but it brought much-needed changes to help the carrier revamp.

Earlier this month, Norwegian's leadership announced that it plans to fly 100 Boeing 737s in the next two years. In this recovery period, it plans to ramp up services outside the Nordics, and the MAX will help the operator on this mission.

What are your thoughts about Norwegian’s commitment to the Boeing 737 MAX? What do you make of the overall agreement? Let us know what you think of the airline and its plans in the comment section.