Norwegian Air orders 50 Boeing MAX planes, options for 30 more By Reuters
© Reuters. FILE PHOTO: A Boeing 737 Max jet airliner model is displayed at the China International Aviation and Aerospace Show, or Airshow China, in Zhuhai, Guangdong province, China September 28, 2021. REUTERS/ Aly Song
OSLO (Reuters) – Norwegian Air has agreed to buy 50 Boeing (NYSE:) 737 MAX 8 aircraft and has options for 30 more aircraft at an undisclosed price, the low-cost airline said on Monday.
The deal is a boost for Boeing, anchoring longtime customer Norwegian to the US plane maker after the Oslo-based airline said earlier this year it would consider switching to rival Airbus.
For Norwegian, the deal marks a return to aircraft ownership after being forced to resort to leasing arrangements during the bankruptcy proceedings that saved the company last year.
“The 50 aircraft are to be delivered between 2025 and 2028, on a schedule that closely matches current aircraft lease expirations. This implies a limited net increase to the company’s current fleet,” Norwegian said in a statement.
As a result of the deals, the airline said it expects to make a net gain of around 2 billion crowns ($212.2 million) after the deal closes, bolstering its equity. He did not specify.
“This is a historic agreement that charts the course by which Norwegian will own a large part of its fleet,” said board chairman Svein Harald Oeygard.
“This will result in lower overall costs and increased financial strength, allowing us to further consolidate our northern stronghold.”
Norwegian told Reuters in February it was considering switching to Airbus unless the ongoing dispute with Boeing over previous plane cancellations is resolved in a timely manner.
Norwegian’s goal is to end the legal dispute with the US aircraft maker before the new aircraft deal is finally signed, likely by the end of June, a source familiar with the deal said.
It was Boeing’s second major European order in recent weeks for MAX planes following a deal with airline giant IAG (LON:).
($1 = 9.4243 Norwegian kroner)