Norwegian Air has signed a letter of intent with Boeing for the purchase of 50 737-8 MAX airplanes, with options to acquire up to 30 more. Under the proposal, the first 50 aircraft will be scheduled for delivery between 2025 and 2028.
On Monday (May 30, 2022), Norwegian Air Shuttle announced that they have signed a letter of intent (LoI) with Boeing to purchase 50 737-8 MAX aircraft for delivery from 2025 through 2028, and options for up to 30 additional jets. The delivery schedule coincides with the expiration of the carrier’s current lease agreements, and will therefore result in a limited capacity increase. The companies expect to finalize the agreement by the end of June 2022. Norwegian plans on financing the Pre-Delivery Payments (PDPs) with positive cash flow from operations, and plans to directly own a significant portion of the aircraft.
In Monday’s announcement, Norwegian’s Chairman of the Board, Svein Harald Øygard, said,
“This agreement is a milestone that allows Norwegian to own a large part of the aircraft fleet. Total costs go down and financial robustness goes up, and this means that we want to strengthen and consolidate our leading position in the Nordic region. The agreement means that we can offer customers to travel with very modern aircraft that will increasingly be able to use sustainable aviation fuel.”
Also commenting on the new 737-8 MAX order commitment, Norwegian’s CEO, Geir Karlsen, said,
“The overall terms of the agreement are attractive to Norwegian, and they fit well with our long-term fleet strategy and route program. We can now offer our customers the very latest in aircraft technology, and they will be able to travel with modern and fuel-efficient aircraft that help to reduce our carbon footprint significantly. The agreement also strengthens the company's equity, with the result that Norwegian's solvency is strengthened.”
The Boeing 737-8 MAX offers a fuel burn reduction of around 14 percent compared to previous generation models, and will contribute to Norwegian’s goal to reduce emissions by 45 percent by 2030.
Norwegian Air Shuttle was founded in 1993 and offers smart and pleasant travel experiences at low prices. The airline has been voted ‘Europe’s Best Low-Cost Airline’ by Skytrax for the last six years. Norwegian’s loyalty program, Norwegian Rewards, has also been voted ‘The Airline Industry’s Best Loyalty Program in Europe/Africa’ at the Freddie Awards four years in a row. In 2019, Norwegian became the first airline to sign the UN Climate Action Programme, committing to becoming climate neutral by 2050. The carrier currently offers affordable flights on a short-haul network of destinations in the Nordic countries and to key European destinations.
Source: Norwegian Air Shuttle/Mynewsdesk