Low-cost firm Norwegian Air Shuttle has today (May 30) revealed it has come to an “agreement in principle” with Boeing regarding recommitment to buy a large amount of Boeing 737 MAX 8 jets.
The purchase is set to involve 50 examples of the Renton-built type – plus option for a further 30 – which, according to Norwegian, is subject to “various closing conditions” but with an aim to finalise such by the end of June 2022.
Norwegian added that a significant share of the jets will be owned by the company to ensure an “optimised and balanced aircraft financing structure”.
Delivery timeframes for the 50 MAX 8 aircraft have been outlined between 2025 and 2028. The Oslo-based carrier says such handover schedule closely corresponds to its current aircraft lease expirations – a move that allows Norwegian “a limited net increase” of its current fleet.
Svein Harald Øygard, chair of the board of Norwegian, said: “This is 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.”
Geir Karlsen, CEO of Norwegian, added: “The overall terms achieved are attractive for Norwegian, and the deal fits well with our long-term fleet strategy and route programme. 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.”
Back at the end of February, Norwegian had signed lease deals with AerCap including examples for the MAX 8.
At the time of writing, the company fields an all-Boeing 737 inventory, including a pair of leased MAX 8s, SE-RTB (c/n 63972) and SE-RTC (c/n 63973), which are currently plying their trade across its route network.
