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g2scandinavia
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Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:28 am

Norwegian Air Shuttle ASA has placed orders with Boeing Commercial Airplanes and Airbus S.A.S. comprising a total of 372 aircraft whereof 222 are on firm order.
The firm orders are for 22 Boeing 737-800, 100 Boeing 737 MAX8 and 100 Airbus A320neo. The agreements also include purchase rights for an additional 100 Boeing 737 MAX8 and 50 Airbus A320neo. The firm orders have an aggregated value at list price of approximately NOK 127 billion.
Norwegian will be the European launch customer for the new Boeing 737 MAX8. The aircraft is the successor of the 737-800 featuring an all-new engine configuration which combined with airframe improvements will give a 10 – 12 % reduction in fuel burn over its predecessor. The existing 737-800 is currently the most efficient single-aisle aircraft and is the backbone of Norwegian’s operation.
Norwegian will take delivery of the new Airbus A320neo for future business and growth opportunities. The aircraft is the successor of the existing Airbus A320 featuring an all-new engine configuration which combined with airframe improvements will reduce fuel burn by 15 – 17 % compared to the existing A320.
Today’s order will consolidate Norwegian’s position as one of the most competitive and cost efficient airlines in Europe. The order is designed to replace the existing fleet and to secure the best available capacity for growth. The order is in line with Norwegian’s established strategy of continuously striving for the lowest cost in the company’s markets which include operating the most fuel and cost efficient aircraft.
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.
Norwegian will host a press and analyst briefing at 10 a.m. CET at Felix Conference Center at Aker Brygge in Oslo.
Please see the enclosed aircraft fact sheet and press release.
Fornebu, Norway, 25 January, 2012
Norwegian Air Shuttle ASA, commercially branded “Norwegian,” is a public low-cost airline noted on the Oslo Stock Exchange. The company is the second largest airline in Scandinavia, and has a route portfolio that stretches across Europe into North Africa and the Middle East. With competitive prices and customer friendly solutions and service, the company has experienced significant growth over the previous years. 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

http://www.mynewsdesk.com/uk/pressro...ircraft-726501
 
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BlueSky1976
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:33 am

Wow... so the rumours were true - Norwegian is one of the mysterious nine customers for the MAX. I'm quite surprised they decided to take 100 each of MAX and NEO insted of 200 of MAX. I guess they want them delivered as quickly as possible.

Congratulations to Airbus, Boeing and Norwegian!
Proudly avoiding 737 MAX since 18.11.2020.
 
Burkhard
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:38 am

Congrats to everybody involved - isn't this a nice signal for 2012 to become another good year for aircraft orders?
 
kaitak
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:41 am

Good for them, but I really don't understand why an airline - particularly a low cost airline - would need both the 737max and A320neo. Sure, both great aircraft, but both do the same job, have the same range and (pretty much) the same capacity; what's the upside?
 
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CPHFF
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:42 am

Quoting BlueSky1976 (Reply 1):
I'm quite surprised they decided to take 100 each of MAX and NEO insted of 200 of MAX.

Me too. With Norwegian (so far) having an entire fleet consisting of 737's.
Either way, it is great to see that Norwegian continues their expansion. Let's keep our fingers crossed that it will be a success.

Per


Ps. I'm wondering what is going through the minds of the SAS Board of Directors right now.......
If it weren't for UAW, Detroit would shine!
 
Burkhard
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 6:49 am

Quoting CPHFF (Reply 4):
Ps. I'm wondering what is going through the minds of the SAS Board of Directors right now.......

I assume they still are sleeping this early in the morning.
 
Oykie
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:09 am

Congratulations to Airbus, Boeing and Norwegian. This will indeed be very interesting. Norwegian has been growing rapidly this last decade, but still they have less than 70 planes. This means they will be 4 times as large as they are today! When the neo and MAX are available Norwegian will have close to 140 737-800.

With so many airplanes on order DY must try to grow into other European countries as well.

Quoting Burkhard (Reply 2):
Congrats to everybody involved - isn't this a nice signal for 2012 to become another good year for aircraft orders?

Lets hope so. I'll bring the popcorn  
Quoting CPHFF (Reply 4):
Ps. I'm wondering what is going through the minds of the SAS Board of Directors right now.......

Just last week Bloomberg said there was a 78% risk that SAS will be bankrupt . Not sure how they can respond.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
brissedk
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:10 am

Wauw what an amazing order! Congrats to Norwegian, Boeing and Airbus!

I'm also happy that Norwegian has much more class than FR and doesn't talk about "Raping the manufacturers for good prices". This is a win/win for everyone!

Cheers,
BJ
Frequent flyer based in CPH - mostly heading to: OSL, HEL, KEF, FAE and EWR
 
oldeuropean
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:11 am

I wonder if there is really a market for such a big LCC in Norway.

- Norway is no member of the EU. Whereas Denmark, Sweden and Finland are. What about traffic rights from outside the EU?

- Norway only has a population of 5 million people (the rest of Scandinavia also only few: Sweden 9.5 mill., Denmark 5.5 mill, Finland 5.4 mill, and Iceland only has 300000. If this shall be their main market.)

- The rest of Europe is glutted with ICCs.

[Edited 2012-01-24 23:20:44]
Wer nichts weiss muss alles glauben
 
14ccKemiskt
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:14 am

Nice! And very expected. Keeping large fleet of equal numbers of both A & B seems to be the new Black.
 
SKAirbus
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:15 am

Quoting oldeuropean (Reply 8):

I wonder if there is really a market for such a big LCC in Norway.

- Norway is no member of the EU. (whereas Danmark, Sweden and Finland are)

- Norway only has a population of 5 million people (the rest of Scandinavia also only few: Sweden 9.5 mill., Danmark 5.5 mill, Finland 5.4 mill, and Island only has 300000)

- The rest of Europe is glutted with ICCs

First of all Norway is pretty much as good as in the EU... they are in the EEA which economically puts them on an equal footing with EU countries and means they benefit from the liberal aviation rules. They are also in Schengen together with Switzerland and Iceland (other non EU countries).

Secondly Norwegian isn't just based in Norway... It has big operations in Sweden, Denmark and Finland making them a huge player in Northern Europe.

There is a bit of an LCC gap in Northern Europe without Norwegian so I think there is definitely a market and DY would not make such a big order without being certain of that.

Congratulations to both Airbus and Boeing and of course Norwegian!
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LifelinerOne
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:16 am

Congratulations to all parties involved!

Quoting kaitak (Reply 3):

I think availability is key here. By buying both they can achieve their grow goals. The order for the A320 is large enough to offset the much touted commonality.

Cheers!   
Only Those Who Sleep Don't Make Mistakes
 
flood
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:17 am

Crikey, exciting news... welcome to narrowbody madness 2012  

Reading the headline, I wasn't quite expecting something this huge! Congrats to Norwegian, Boeing and Airbus on this massive deal.

It seems they're commitments, rather than firm. Airbus has just updated their site:
http://www.airbus.com/newsevents/new...n-commits-to-100-a320neo-aircraft/

[Edited 2012-01-24 23:19:29]
 
RIXrat
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:22 am

Just playing Devil's advocate. The link the OP attached could not be found. Homepage of mynewsdesk.com came in loud and clear but writing in the search for Norwegian, or Norwegian Air Shuttle, produced no results. Hmmm?
 
oldeuropean
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:25 am

Quoting SKAirbus (Reply 10):
First of all Norway is pretty much as good as in the EU... they are in the EEA which economically puts them on an equal footing with EU countries and means they benefit from the liberal aviation rules. They are also in Schengen together with Switzerland and Iceland (other non EU countries).

Secondly Norwegian isn't just based in Norway... It has big operations in Sweden, Denmark and Finland making them a huge player in Northern Europe.

There is a bit of an LCC gap in Northern Europe without Norwegian so I think there is definitely a market and DY would not make such a big order without being certain of that.

Ok, some good arguments.

I'm still a bit sceptic, but we'll see.  
Wer nichts weiss muss alles glauben
 
g2scandinavia
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:27 am

Quoting oldeuropean (Reply 8):
- Norway only has a population of 5 million people (the rest of Scandinavia also only few: Sweden 9.5 mill., Denmark 5.5 mill, Finland 5.4 mill, and Iceland only has 300000. If this shall be their main market.)

Norway has one of the largest aviation markets in Europe (47 mill pax 2012). Almost twice of Denmark and far larger than Sweden. However I do agree with you that the majority of this is not linkly to be placed in Norway.

[Edited 2012-01-24 23:33:23]
 
KFlyer
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:29 am

This takes away the available delivery positions further away and probably will bring the bubble burst closer. Congrats to Norwegian anyway, they're playing their cards right.
The opinions above are solely my own and do not express those of my employers or clients.
 
OH-LGA
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:30 am

Quoting RIXrat (Reply 13):
Just playing Devil's advocate. The link the OP attached could not be found. Homepage of mynewsdesk.com came in loud and clear but writing in the search for Norwegian, or Norwegian Air Shuttle, produced no results. Hmmm?

The link got garbled when the OP posted it. I searched "norwegian" and found this immediately on their site:
http://www.mynewsdesk.com/uk/pressro...-purchases-222-new-aircraft-726501
Head in the clouds... yet feet planted firmly on the ground.
 
oldeuropean
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:30 am

airliners.de only reports about an order for 100 737 MAX and 22 738. No NEOs.

But I don't know if they are a reliable source.

http://www.airliners.de/wirtschaft/b...rwegian-erteilt-grossauftrag/26216

[Edited 2012-01-24 23:35:12]
Wer nichts weiss muss alles glauben
 
comair25
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:32 am

The question is, how many of these aircraft will actually be delivered.
 
oldeuropean
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:39 am

Wer nichts weiss muss alles glauben
 
arn777
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:43 am

Poor old SAS. Little did they know back in 2002, being more or less the only operator in the Norwegian market, what would happen. It is great to see a company being market driven in stead of being controlled by politics.

As CEO Bjørn Kjos have said: "SAS is the perfect competitor". They are indeed..
 
Mortyman
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:43 am

Full pressrelease in English from Norwegian:

http://media.norwegian.com/en/Pressrelease/?iId=726501


It is firm orders in the 100's and also purchaserights
 
flood
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:44 am

 
behramjee
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 7:52 am

To be frank, I do not think that this order placed by the airline is for itself to be deployed across its network. I think that this order has been placed more like an investment where by Norweigian Airlines would either sell or lease out the aircraft upon delivery and make a good profit by doing so since the value of the MAX and NEO by the time they get delivered would have appreciated considerably. There is no way that an airline with Norway as a home market can even support 100 aircraft as part of its fleet let alone have a huge network unless it has multiple hubs across Europe but that too the intense competition will not allow it to make healthy profits.

Hence my earlier point stating that I feel this is more of an investment and we could see the airline creating a strong subsidary leasing company that would handle lease/sale agreements of a majority of these aircraft upon delivery.
 
KFlyer
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:04 am

Quoting behramjee (Reply 24):
To be frank, I do not think that this order placed by the airline is for itself to be deployed across its network. I think that this order has been placed more like an investment where by Norweigian Airlines would either sell or lease out the aircraft upon delivery and make a good profit by doing so

The reality of this order is as same as the ones by AirAsia, Lion Air etc. The airline will most probably use these aircraft in 'generations' to replace each other. You will likely see the first 737-8 from the firm orders replace an existing 737-800 and a 737-8 from the purchase rights will likely replace that 737-8. The Airbuses could likely be for a different operation, but could even never materialize in fact since its just a MoU. I do not think that Norwegian is interested in entering into the aircraft leasing business. An airline already has enough problems of its own to manage, and the Ex-Im/ECA guarantees show that Norwegian never expects to finance these at once.
The opinions above are solely my own and do not express those of my employers or clients.
 
Someone83
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:09 am

Quoting KFlyer (Reply 25):
The airline will most probably use these aircraft in 'generations' to replace each other. You will likely see the first 737-8 from the firm orders replace an existing 737-800 and a 737-8 from the purchase rights will likely replace that 737-8.

They said that they tend to keep each aircraft for seven years, so your assesment is probably correct

Quoting oldeuropean (Reply 8):
I wonder if there is really a market for such a big LCC in Norway.

No, and that's why only a some of them will be based in Norway. With this orders we might see more bases outside the Nordic countries?
 
SKAirbus
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:27 am

I wonder where the A320s will be based. It would make sense to have single type operating bases a bit like SAS have with the Airbus narrow bodies at CPH.

It would make sense to base the Airbus aircraft in Norway and have other basis outside Norway operated by 737s.

It's about time we see more Airbus on domestic routes in Norway. 737s get a bit dull and samey after a while!
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haavig
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:28 am

Quoting comair25 (Reply 19):
The question is, how many of these aircraft will actually be delivered.

Any concrete reasons why they should not be?
 
SASMD82
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:34 am

First of all congratz to Boeing, Airbus and Norwegian!! Fantastic news.

Quoting oldeuropean (Reply 8):
- Norway only has a population of 5 million people (the rest of Scandinavia also only few: Sweden 9.5 mill., Denmark 5.5 mill, Finland 5.4 mill, and Iceland only has 300000. If this shall be their main market.)

Please don't forget that Finland is no Scandinavia. Norway, Sweden, Finland, Denmark (also including Greenland and Iceland) are called the Nordics or Northern Europe.

Quoting comair25 (Reply 19):
The question is, how many of these aircraft will actually be delivered.

As they currently operate 49 planes I wonder what kind of expansion plans are revealed. This is huge!
 
Unflug
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:41 am

Quoting oldeuropean (Reply 20):
Ok. Airbus report about a MoU for 100 NEOs.

http://www.airbus.com/newsevents/new...raft/
Quoting Mortyman (Reply 22):

Full pressrelease in English from Norwegian:

http://media.norwegian.com/en/Pressr...26501



After all those discussions regarding MoUs and firm orders on this site apparently even Airbus got confused: according to the Norwegian press release they signed a firm order, not a MoU  
 
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 8:50 am

Very interesting.

Shame DY's financial performance is pretty shaky, per its net profit (USD, millions) and net profit margins between 2006 (shown last) and 2010 (shown first):


Net result 31.26, 71.36, -1.34, 14.54, -3.45
Net margin 2.2%, 6.1%, -0.12 %, 2%, -0.74 %

Incidentally and while it is not new news, FR has identified Scandinavia as a key growth area, and anticipates about 50 738s to the area: http://www.centreforaviation.com/ana...expansion-through-palma-base-65148

[Edited 2012-01-25 01:03:04]
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cuban8
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:09 am

Quoting SKAirbus (Reply 27):
It would make sense to base the Airbus aircraft in Norway and have other basis outside Norway operated by 737s.

It's about time we see more Airbus on domestic routes in Norway.


I don't see why it would make sense to base some Airbus aircrafts in Norway. The 737's has a tradition to fly the domestic routes in Norway and has done it pretty well so far. Also, the 737 is supposed to have an advantage over the Airbus in fuel-consumption when it comes to shorter routes and also the turn around times are usually shorter on domestic flights.
I do agree with you that more Airbuses at OSL would make it more fun for aviation enthusiasts though.

Quoting CPHFF (Reply 4):
Ps. I'm wondering what is going through the minds of the SAS Board of Directors right now.......


Probably, how do we convince the Scandinavian governments to loan us some more money...  
When business goes to hell, you get rid of three things. Your private jet, your yacht and your mistress..........and most importantly in that order.
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Someone83
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:12 am

Quoting cuban8 (Reply 32):
I don't see why it would make sense to base some Airbus aircrafts in Norway. The 737's has a tradition to fly the domestic routes in Norway and has done it pretty well so far. Also, the 737 is supposed to have an advantage over the Airbus in fuel-consumption when it comes to shorter routes and also the turn around times are usually shorter on domestic flights.
I do agree with you that more Airbuses at OSL would make it more fun for aviation enthusiasts though.

Range/performance on longer routes from Norway to the Mediteranean/Middle- East/North Africa. Ie. the A320neo is most likely better on longer flights than 737neo
 
Someone83
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:24 am

Quoting Unflug (Reply 30):
After all those discussions regarding MoUs and firm orders on this site apparently even Airbus got confused: according to the Norwegian press release they signed a firm order, not a MoU  
DY said they're firm, but due to technicalities they listed as MOUs as they haven't had the time to firm them yet

[Edited 2012-01-25 01:24:48]
 
Oykie
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:26 am

Quoting someone83 (Reply 33):
Range/performance on longer routes from Norway to the Mediteranean/Middle- East/North Africa. Ie. the A320neo is most likely better on longer flights than 737neo

DY is already serving DXB with their 738. The A320neo and MAX should open up some new long haul flights. Canada and Boston is also within range. If DY opens up a base in Reykjavik they can also compete against Icelandair...
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
Someone83
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:35 am

Quoting oykie (Reply 35):
DY is already serving DXB with their 738

Yes, but they're weight restricted and has to block around 30 seats. A A320neo with longer range, would be much more suitable for a route like this compared to a 737-800 which are realy strecthning it on this route
 
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EPA001
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:36 am

Quoting SASMD82 (Reply 29):
First of all congratz to Boeing, Airbus and Norwegian!! Fantastic news.


Two surprises for me on this announcement:

1. the size of the order.
2. that Norwegian has split up the order.

It will be nice to see both the B737-MAX and the A320-NEO in their colors. .

To avoid misunderstandings I am pleasantly surprised with this huge Norwegian order.  Smile.

[Edited 2012-01-25 01:45:12]
 
vfw614
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:48 am

I am pretty sure that the long-term strategy is to have bases outside the Nordic countries, maybe under a slightly altered brand utilizing the NEOs. They had a base in WAW for a while, if I am not mistaken, but given Wizzair's strength in CEE, more likely choices are, for example, the Baltic states, Germany or the Netherlands.
 
Daysleeper
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 9:52 am

I'm really surprised they ordered the NEO - from what I can see on Air Fleets they have never operated an Airbus before. Makes me wonder if this is a similar situation to AA where no single manufacturer had the slots or capacity to produce the jets in the time frame they wanted them.

Great news for all concerned.  
 
r2rho
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:11 am

Quoting g2scandinavia (Thread starter):
The delivery of aircraft starts in 2016.

That is as early a delivery slot as you can get for a NEO, so the negotiations must have been going on for a while now, because there shouldn't be any slots left in 2016.

Quoting BlueSky1976 (Reply 1):
so the rumours were true - Norwegian is one of the mysterious nine customers for the MAX.

I don't think so, according to the Boeing press release:

With the Norwegian order, the 737 MAX has orders and commitments for more than 1,000 airplanes from 15 customers

So this would be a new customer, as with WN there were 13 customers. But... who is the 14th? Have I missed something?

Quoting kaitak (Reply 3):
I really don't understand why an airline - particularly a low cost airline - would need both the 737max and A320neo.

Probably because, like AA, they want them delivered very fast, and one single manufacturer cannot meet that rate of delivery. In any case, with a fleet of 100 a/c you have more than enough economies of scale. And with rising fuel prices, having the right a/c for the right mission is gaining more importance.

Quoting oykie (Reply 6):
This means they will be 4 times as large as they are today!

Indeed, which can only mean that they intend to expand aggressively across Europe, as the Norwegian market is not large enough for such a massive fleet. That means taking on U2, FR and W6 head-on.
 
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solnabo
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:21 am

'Ryanair brushes off Norweigan'

From VG:

http://www.vg.no/reise/artikkel.php?artid=10076629

Why A320Neo, the same pax config (almost) as B738Max and not A319 - 321Neo´s?

Congrats to Airbus Boeing and Norwegian  Big grin  airplane   champagne 

[Edited 2012-01-25 02:33:48]
Airbus SAS - Love them both
 
Mortyman
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:24 am

So what's next - A 100 dreamliners ?  
Quoting r2rho (Reply 40):
Indeed, which can only mean that they intend to expand aggressively across Europe, as the Norwegian market is not large enough for such a massive fleet. That means taking on U2, FR and W6 head-on.

As already mentioned by others, I doubt we will se all the aircraft in operation at once. some of them are proabably replacment aircrafts.
 
Mortyman
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:31 am

Norwegian will be the first airline in Europe to get the 737 MAX8. The first will come in 2017
 
SKAirbus
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:38 am

Yep Bjørn Kjos has said aircraft will be replaced after 7 years so it is the start of a big rolling fleet replacement program.

I guess another example of this is FR and SQ who like their aircraft young (with some exceptions).
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garpd
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:43 am

Interesting that the NEOs are only on MOU, but the 737MAX is firm.

Do you think they are building in protection to overcome shortfalls in what the MAX achieves?
Or will they firm up the NEO later anyway?
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astuteman
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RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:47 am

Quoting r2rho (Reply 40):
That is as early a delivery slot as you can get for a NEO, so the negotiations must have been going on for a while now, because there shouldn't be any slots left in 2016.

If pushed, I would suggest that 2016 is the date for the 737-800's, not the MAX's or NEO's

Rgds
 
B747forever
Posts: 13861
Joined: Mon May 21, 2007 9:50 pm

RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:51 am

Quoting SKAirbus (Reply 44):
Yep Bjørn Kjos has said aircraft will be replaced after 7 years so it is the start of a big rolling fleet replacement program.

Exactly. They will be able to maintain a young fleet while growing a bit. I dont get it why some members calls this order off.
Work Hard, Fly Right
 
eaa3
Posts: 957
Joined: Mon Sep 10, 2007 4:49 am

RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:58 am

Quoting oldeuropean (Reply 8):
- Norway only has a population of 5 million people (the rest of Scandinavia also only few: Sweden 9.5 mill., Denmark 5.5 mill, Finland 5.4 mill, and Iceland only has 300000. If this shall be their main market.)

I think this order is way to big. I think that if they are planning to use this on their own network, even in all of Scandinavia, then they are delusional. If this is really the case then I would think that they will get themselves into financial trouble sooner or later.

Bubble in Norway?

Quoting behramjee (Reply 24):
To be frank, I do not think that this order placed by the airline is for itself to be deployed across its network. I think that this order has been placed more like an investment where by Norweigian Airlines would either sell or lease out the aircraft upon delivery and make a good profit by doing so since the value of the MAX and NEO by the time they get delivered would have appreciated considerably. There is no way that an airline with Norway as a home market can even support 100 aircraft as part of its fleet let alone have a huge network unless it has multiple hubs across Europe but that too the intense competition will not allow it to make healthy profits.

This might however be smart. Owning way to many slots with the intent of selling them when the wait for new B737-8´s and A320NEO has become unbearable.

Quoting oykie (Reply 35):
If DY opens up a base in Reykjavik they can also compete against Icelandair...

Or just buy Icelandair and use the A320´s to grow the hub in Iceland with A320NEO flights to the US and Europe. The A320NEO will be able to serve the US from Iceland with relative ease. With an A320 size aircraft the hub could increase destinations and frequency hugely and therefore making the hub work much better, given that a hub works best with lot´s of destinations.
 
g2scandinavia
Topic Author
Posts: 432
Joined: Wed Jun 02, 2010 8:00 am

RE: Norwegian Placing Europes Largest Order Ever!

Wed Jan 25, 2012 10:59 am

Quoting garpd (Reply 45):
Interesting that the NEOs are only on MOU, but the 737MAX is firm.

I was at the press conference this morning. Airbus and Norwegian told the press that the order was firm and that MOU is incorrect!

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