Norwegian plans to use all 30 of its options to purchase the larger B737-10 aircraft in the future, as CEO Geir Karlsen believes it is the right choice for the airline. Deliveries may take a few years, and the airline is aiming to transition to an all-MAX fleet.
Concerns were raised about Boeing’s reduced production of the B737-8 impacting Norwegian’s plan to operate 87 aircraft this summer, with limited deliveries expected from the manufacturer.
Norwegian has paid NOK3.4bn into its B737 MAX aircraft order and is confident in its financing arrangements with banks and leasing houses.
The airline has renegotiated purchase prices, harmonised aircraft specifications, and extended lease agreements with a dry-leased fleet of B737-800s to mitigate production delays and reduce operating expenses. Plans to open more bases, partner with Widerøe, and leverage synergies with complementary route networks are also part of Norwegian’s strategy. Geir Karlsen CEO of Norwegian: “we think that the MAX 10 is the right thing to go for, and we will probably spend or use maybe all the 30 options buying MAX 10. For obvious reasons, it will take a while, in our opinion, before the first MAX 10 can actually be delivered from Boeing. So it is a few years down the road.”
