Norwegian´s fully owned subsidiary Arctic Aviation Assets (AAA) has ordered two new Boeing 737 MAX aircraft. In addition, AAA today signed a Letter of Intent (LOI) for a sale-leaseback transaction of 11 Boeing 737-800 aircraft currently operated by Norwegian.
Norwegian has exercised its options to order two new Boeing 737 MAX aircraft that will be delivered during 2018. Following this announcement, AAA now has a firm order of 110 Boeing 737 MAX aircraft and 90 remaining purchase options.The LOI for sale-leaseback of 11 aircraft is expected to reduce the Norwegian Group’s financial net debt by approximately NOK 1.4 billion based on the currency exchange rate NOK/USD of 8.5.
On May 4, 2017, Norwegian announced the sale-leaseback of eight new Boeing 737-800 aircraft to be conducted in the second quarter. Following the sale of 19 aircraft (eight new deliveries and 11 existing), the Norwegian Group estimates a positive net cash flow impact on of approximately NOK 2.3 billion. These aircraft will be leased back to Norwegian me.
“By selling some of our older 737-800 aircraft and ordering two additional 737 MAX aircraft, we are taking another step towards replacing our current fleet with even more fuel efficient and more environmentally friendly aircraft. This allows us to enhance our operation and reap financial benefits. Norwegian’s strategy is to operate and own the newest state-of-the-art fleet of aircraft, giving passengers high-quality comfort and the shareholders as high a return as possible,” said Bjørn Kjos, CEO of Norwegian.
In other news, Norwegian has announced that Jonathan Swift will become its second Irish tail fin hero, with the celebrated author’s portrait to appear on the tail of the airline’s aircraft that will serve the new transatlantic routes from Cork, Shannon and Dublin to the US East Coast.
Norwegian has always honored iconic figures on the tails of its aircraft, featuring personalities who symbolise the spirit of Norwegian through innovation, challenging the norm and inspiring others. To reflect Norwegian’s rapid growth and new routes from Ireland, the airline has begun a series of Irish tail fin heroes. Jonathan Swift will become Norwegian’s second Irish hero, following legendary explorer Tom Crean who was announced earlier this year.
Born in Dublin in 1667, Jonathan Swift was a poet, author and journalist best known for his satirical novel Gulliver’s Travels and for his satirical essay on the Irish famine ‘A Modest Proposal’. Swift studied at Trinity College in Dublin before spending time in England where he wrote A Tale of a Tub published in 1704. During this time Swift also decided upon a career in the clergy and was ordained as a priest in the Church of Ireland.
His greatest known work – Gulliver’s Travels, a book of fantasy, satire, and political allegory -, was written in 1725 and published in 1726. The book was a great success and contributed to Swift’s fame and legacy as a writer and social commentator.
The portrait of Jonathan Swift, which will be used to adorn the tail of a Norwegian aircraft, has been taken from an oil painting of the author by Charles Jervas painted in 1875. The portrait is in the collection of the National Gallery of Ireland, which will celebrate a reopening of the Historic Wings on the 15th June with a two-week summer highlight festival.
From July, Norwegian will launch a series of new low-cost transatlantic routes from Cork, Shannon and Dublin. The flights will serve smaller airports on the US east coast which offer good access into the New York, Boston and New England areas but carry significantly lower landing charges, allowing Norwegian to offer some truly affordable fares.
Norwegian is Europe’s third largest low-cost carrier, carrying 30 million yearly passengers to more than 140 global destinations.
All images by Norwegian.