Norwegian Air Shuttle has signed an agreement with both Airbus and Boeing for delivery of a total of 222 new aircraft—the largest such deal in European aviation history.
The order includes 100 new Boeing 737 MAX8s and 22 Next-Generation 737-800s, making Norwegian the European launch customer for Boeing’s new aircraft. The Airbus order—Norwegian’s first purchase from the company—includes 100 Airbus A320neos. The orders include additional purchase rights of 150 aircraft from both manufacturers.
The total agreement has a contract value at list prices of NOK 127 billion and is the largest ever single investment in Norway—even compared with the largest investments in the Norwegian offshore industry.
Deliveries are scheduled to start in 2016.
Commenting on the deal, Norwegian’s CEO Bjørn Kjos said: “Today is a historic day for Norwegian. The order is the largest ever in European aviation history and marks a major milestone in the company’s 10 year history. We have secured our fleet renewal for years to come and are very pleased with the agreements with both Airbus and Boeing.
“Norwegian has now reached a size where we will benefit from having two suppliers, both in terms of ensuring adequate flight capacity, flexibility and competition between two manufacturers.”
He continued: "International air traffic will keep on growing in the years ahead and Norwegian is determined to be a strong, stable and attractive player in the airline industry. We will continue to provide our customers with quality at a low fare and live up to our vision that everyone should afford to fly. The new aircraft are win-win for our passengers, the environment and the company's costs. As we intend to replace every aircraft after seven years of operation, it is mandatory that we plan at least 10 to 20 years ahead. We will sell or rent out our older aircraft in order to keep a young fleet.”
Norwegian is the second largest airline in Scandinavia, with a route portfolio that stretches across Europe into North Africa and the Middle East. With more than 13 million passengers in 2010, Norwegian is the 3rd largest low-cost airline in Europe.
Norwegian currently operates 61 aircraft on 297 routes to more than 100 destinations and employs approximately 2,500 people.
