Norwegian Air Shuttle orders 372 aircraft from Boeing and Airbus; largest order in European history

Norwegian Air Shuttle placed (25-Jan-2012) orders with Boeing and Airbus comprising a total of 372 aircraft, of which 222 are on firm order and 150 are additional purchase rights. The firm orders are for 22 737-800s, 100 737 MAX 8s and 100 A320neos. The agreements also include purchase rights for an additional 100 737 MAX 8s and 50 A320neos. The total agreement is the largest ever in European aviation history and the largest single investment in Norway. It has a contract value at list prices of NOK127 billion (EUR16.5 billion). It also marks Norwegian's first aircraft purchase from Airbus. Norwegian will be the European launch customer for the new 737 MAX 8. Norwegian will take delivery of the new A320neo for "future business and growth opportunities". The carrier stated the order will "consolidate Norwegian's position as one of the most competitive and cost efficient airlines in Europe" and is designed to "replace the existing fleet and to secure the best available capacity for growth". The delivery of aircraft starts in 2016. The aircraft purchase is supported by the Export-Import Bank of the United States (Ex-Im) and European Export Credit Agencies. Following this transactions, Norwegian has a total of 150 purchase rights and 277 aircraft for future delivery, including 55 previously ordered 737-800s. In addition Norwegian has a firm order of six 787-8s. [more - original PR - Norwegian Air Shuttle I] [more - original PR - Norwegian Air Shuttle II] [more - Airbus] [more - Boeing]

Norwegian Air Shuttle: "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. 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....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's order of 42 new Boeing 737-800 aircraft in 2007 was by many viewed as a bold investment. History has, however, shown that it was a necessary move to ensure our competitiveness and reduce costs. This order has been extended several times since 2007, proving that our need for aircraft has been far greater than we anticipated five years ago," Bjørn Kjos, CEO. Source: Company Statement, 25-Jan-2012.