Tag Archives: 35304

Norwegian orders 19 additional 344-seat Boeing 787-9 Dreamliners

Norwegian Air Shuttle (Norwegian Long Haul) (Oslo) today made this announcement:

Norwegian.com logo-1 (LRW)

Norwegian, Europe’s third largest low-cost airline, is continuing to expand its international operations by signing an agreement to purchase 19 new Boeing 787-9 Dreamliners – the order will help more than quadruple its current long-haul fleet to 38 aircraft within the next five years.

The agreement is the largest single order of 787-9s in Europe and includes purchase options for an additional ten aircraft of the same type. The new order will enable the company to launch even more long-haul routes and expand its existing network in the coming years.

Norwegian already operates Dreamliner aircraft from its London Gatwick base, serving the UK’s only low-cost long-haul flights to US – Dreamliners are used on services to New York, Los Angeles and Fort Lauderdale/Hollywood. A further low-cost route from Gatwick to Boston will be launched in May 2016, while next month will see the launch of low-cost Caribbean flights with the UK’s only direct route to Puerto Rico – both new routes will also be served by Dreamliner aircraft.

Norwegian currently operates eight 787-8 Dreamliners and has 11 of the bigger 787-9 on order. With today’s order, Norwegian’s long-haul fleet will consist of 38 Dreamliners by 2020. The first deliveries from the new order will commence in 2017.

The 787-9 complements and extends the 787 family. With a longer fuselage, the 787-9 will fly 53 more passengers than the 787-8. Norwegian’s asset company, Arctic Aviation Assets Limited (AAA), will own the aircraft.

 

Norwegian’s version of the 787-9 has 344 seats with 35 in premium and 309 in economy. With today’s order for 19 787-9s, Norwegian has more than 150 unfilled orders from Boeing, including 100 737 MAXs. In addition, the company has 100 Airbus A320neos on order.

In other news, on the financial side, Norwegian today reported its third quarter results for 2015 with a pre-tax result (EBT) of 1.1 billion NOK (£87million), a strong improvement from the same quarter previous year. The company’s long-haul operations and international routes have a positive impact on the results. The load factor is at a record high of 91 percent.
The pre-tax result was 1.1 billion NOK, a strong improvement from 505 MNOK (£43.5million) in the same quarter last year. The load factor for the third quarter was 91 per cent, up six per cent.

The airline carried 7.7 million passengers this quarter, an increase of 9 per cent. The long-haul passenger growth was 15 per cent, compared with last year’s third quarter result.

Norwegian’s strongest growth in terms of passenger numbers was at London Gatwick, where the airline operates both long- and short-haul routes. The growth at Spanish airports is also considerable. In the Nordic countries passenger numbers are stable, with a slight increase in market share.

Norwegian CEO Bjørn Kjos said: “The third quarter results show that Norwegian’s long-haul operations and international routes are becoming significantly more important. This is where we see most of the future growth potential, enabling the company to compete in a global market with strong competition.

“UK activity has played a crucial role in a strong third quarter for Norwegian, with Gatwick seeing our biggest overall growth in passenger numbers. With new aircraft and new routes planned, expansion in the UK will continue to be at the forefront of our long-term plans.

“We also see growth in Europe in general, while the Scandinavian market is stable. The Scandinavian and European route networks play an increasingly important role in our long-haul strategy, as many of our passengers use connecting flights with Norwegian.”

The UK will be a key market in Norwegian’s future expansion plans – growth and activity in the UK during the third quarter has included:

UK FLEET UPGRADED WITH NEW AIRCRAFT – Norwegian already has one of the youngest aircraft fleets in the world and Q3 has seen further new 737-800 aircraft begin operating from UK airports

Also in the third quarter, Norwegian received more international awards, including two Passenger Choice Awards. The company took delivery of five new aircraft, ordered two new Dreamliners and entered into an agreement to lease out 12 of its new Airbus A320neos, which will be delivered from 2016. Norwegian-subsidiary Arctic Aviation Assets Limited owns the aircraft and will be leasing them out for a period of 12 years.

Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 787-8 Dreamliner EI-LNA (msn 35304) is pictured at Paine Field near Everett before it was handed over to the carrier.

Norwegian aircraft slide show: AG Airline Slide Show

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Norwegian signs a contract for three additional Boeing 787-9 Dreamliners, loses $137.6 million in the first quarter

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has entered into an agreement for the delivery of three new long-haul Boeing 787-9 Dreamliners. Two of the aircraft will be delivered in 2016 and one in 2017.

Norwegian continues to expand its international operations and has agreed to also lease two 787-9 Dreamliners. Norwegian will put two of the planes in service in 2016 and one in 2017. Today, Norwegian has five long-haul type Dreamliner 787-8 in its fleet and another three on order. In addition, Norwegian has already placed an order for six 787-9s. With this new contract, Norwegian in 2018 will have a long-haul fleet of 17 long-haul 787s.

Facts about Boeing 787-9 Dreamliner:

Holds up to 20 percent more passengers than 787-8
Six meters (20 feet) longer than the 787-8
Significantly greater cargo capacity than the 787-8
Eight percent less fuel per seat than today’s version, which also gives the corresponding reduction in environmental emissions

In other news, Norwegian announced a quarterly loss before taxes of -813 million NOK ($137.6 million). Quarterly earnings were affected by additional costs for hiring of crews and a weak Norwegian crown.

During the first quarter, the revenue increased to 3.55 billion Norwegian kroner, an increase of 22 percent compared to the same quarter last year.

9 million passengers flew with Norwegian representing growth of 24 percent. The traffic growth (RPK) was at 50 percent, which is also linked to each Norwegian passengers now fly much longer than they did a year ago.

The figures also show strong output growth with an increase of 48 percent (ASK). The load factor was 77 percent in the first quarter, up one percentage point compared to the same quarter the year before. Adjusted with extra costs and a weak currency decreased costs (CASK) by nine percent in the first quarter.

Extra costs associated with long-haul operations accounted for 78 million NOK. These costs included the leasing of aircraft, additional fuel and the cost of hotels, food and drink to passengers affected by technical and operational problems with long-distance business.

During the first quarter, Norwegian phased in five new Boeing 737-800s and a Boeing 787-8 Dreamliner.  With the Dreamliner (EI-LNE) that was delivered last week, Norwegian now has a total of five long-haul aircraft in service and 12 on order.

Copyright Photo: Duncan Kirk/AirlinersGallery.com. The first, the pictured 787-8 EI-LNA (msn 35304) displays the likeness of Sonja Henie on the tail.

Norwegian: AG Slide Show

Norwegian today launches Stockholm-Los Angeles Boeing 787 nonstop flights

Norwegian Long Haul‘s (Norwegian Air Shuttle) (Norwegian.com) (Oslo) today launched the first nonstop flight between Stockholm (Arlanda) and Los Angeles in California with twice weekly service. As of April 30, Norwegian will operate three flights a week, on Mondays, Wednesdays and Fridays. This is the first time that Sweden has a nonstop flight to Los Angeles.

Twice-weekly nonstop Stockholm – Oakland flights will begin on May 3, 2014 and will operate on Tuesdays and Saturdays.

Currently Norwegian’s other long-haul routes from Stockholm Arlanda operate to New York (JFK), Fort Lauderdale/Fort Lauderdale and Bangkok.

Norwegian is currently attempting to transfer the Norwegian Long Haul operations to Norwegian Air International (Dublin). All of the 787s are registered in Ireland.

Copyright Photo: Stefan Sjogren/AirlinersGallery.com. Boeing 787-8 EI-LNA (msn 35304) lands at Malaga with Olympic skater Sonja Henie on the tail.

Norwegian: AG Slide Show

Norwegian Air International is awarded an AOC in Ireland, will lease four Boeing 787-9s

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian Air International) (Norwegian.com) has issued this statement concerning the issuance of an Air Operators Certificate (AOC) from the state of Ireland for subsidiary Norwegian Air International Limited (Dublin) on February 12. Norwegian’s long haul Boeing 787s operations will be transferred to this new subsidiary.

Norwegian issued this statement (translated from Norwegian):

Irish authorities have awarded Norwegian Air Operator Certificate (AOC) and license to Norwegian’s wholly owned subsidiaries Norwegian Air International Limited, which has its administration in Dublin.

The operation of the Norwegian’s long-haul routes will, with the new permit will be transferred to Norwegian Air International Limited (NAI). The airline has established management and essential government functions in Dublin and is ready to operate under the Irish Aviation Authority.

Why Ireland?

There are several reasons why the Norwegian has established long-distance company in Dublin. The main reason is the availability of future traffic rights to and from the EU. Norwegian has an order for over 260 new aircraft and plans to launch several new routes to and from Europe.  Norwegian Air International’s establishment in Ireland does not affect the export guarantees attached to the company’s financing. Besides that Ireland has an aviation authority of good repute, the country is also a sort of hub for the airline industry – including all major leasing companies such as Norwegian partners with offices in Dublin.

The choice of Ireland, not because the country has specific rules that allow American or Asian crews, with both politicians and unions have claimed. In fact, Norwegian could have based its long-distance company in any other European country and yet used American and Asian crews, as several other European airlines have done for years. The only exceptions are Norway and to some extent Denmark who have chosen to retain outdated rules regarding this.

Transfer of new AOC

The transfer of the first Dreamliner plane to the new EU AOC: one implemented on February 12 and was done in conjunction with scheduled maintenance. The remaining aircraft will be transferred. U.S. transport authorities will now consider its application for traffic rights asserted
Norwegian’s long-haul flights to and from the United States. This is regulated under the Open Skies agreement between the U.S. and the EU, which means that an operator from any party that meets the conditions, shall be entitled to operate under this agreement. It granted the operating license and the license in Ireland means that Norwegian meets all the necessary requirements.

Competitors and unions have made a number of false accusations against both Norwegian and Ireland. This is despite the EU’s transport authorities, Irish and Norwegian regulators have repeatedly disproved it. Norwegian expects the approval of the application of the United States in compliance with the Open Skies Agreement as Norwegian has the same rights as before when the aircraft were moved from Norway to the EU.

In other news, Norwegian has contracted for four Boeing 787-9 Dreamliners for delivery in 2017 and 2018. With the new agreement, Norwegian’s 787 fleet will increase to 14 aircraft.

The four aircraft will be leased from International Lease Finance Corporation (ILFC). The new aircraft will be in service in 2017 and 2018.

Norwegian has three Boeing 787-8 Dreamliners in the current fleet and five more on order. Further, the company has already signed an agreement for two Boeing 787-9 Dreamliners with deliveries in the first quarter of 2016. In total, Norwegian will have a fleet of 14 long-haul 787 aircraft, with four to be delivered in 2014, one in 2015, two in 2016, two in 2017 and two in 2018.

This larger Dreamliner model accommodates more passengers and is more fuel efficient and environmentally friendly than the 787-8 model. Boeing has already made a series of test flights and the aircraft type will be in commercial operation later in 2014. The agreement has been signed with the International Lease Finance Corporation (ILFC).

Finally, Norwegian announced an annual profit before tax of 437 million Norwegian kroner (NOK) ($71.6 million). For the fourth quarter, Norwegian reported a profit of 283 million kroner.

2013 is the seventh year in a row that Norwegian has reported a profit.

Copyright Photo: Antony J. Best/AirlinersGallery.com. Norwegian Long Haul’s (now Norwegian Air International) Boeing 787-8 EI-LNA (man 35304) arrives in London (Heathrow).

Norwegian: AG Slide Show

Norwegian is selling out on its trans-Atlantic Boeing 787 flights

Norwegian Air Shuttle (Norwegian Long Haul) (Oslo) is doing well with its new Long Haul Boeing 787 flights across the Atlantic Ocean despite the well-publicized early problems with the new type. The airline is now selling out these flights and has ordered more 787s to expand its long range flights according to this article by Bloomberg Businessweek.

Bloomberg Businessweek also asks the question of whether Norwegian will become the cheapest global airline?

Read this interesting article and videos: CLICK HERE

Copyright Photo: Keith Burton/AirlinersGallery.com. Norwegian Air Shuttle’s (Norwegian.com) (Norwegian Long Haul) Boeing 787-8 Dreamliner EI-LNA (msn 35304) with the image of Sonja Henie departs from Bangkok.

Norwegian: AG Slide Show

Norwegian to lease two Boeing 787-9s from MG Aviation, will operate seasonal New York-Bergen 787 flights, ALPA opposes Norwegian Air International in Ireland

Norwegian Air Shuttle (Norwegian Long Haul) (Norwegian.com) (Oslo) has entered into a lease agreement for two new Boeing 787 Dreamliners for delivery in the first quarter of 2016. The aircraft are the new model 787-9 Dreamliner, which is slightly larger than the 787-8s Norwegian currently uses on its long-haul routes.

Norwegian continues to build up its long-haul fleet for further international growth and has signed an agreement with MG Aviation Ltd. to lease two long-haul Boeing 787-9 Dreamliners. Norwegian plans to put the aircraft into service during the first quarter of 2016. Norwegian has three Boeing 787-8 Dreamliners currently in the fleet and five more on order. Through this, the company in the future will have a fleet of 10 long-haul aircraft, including four delivered in 2014, one in 2015 and two in 2016.

Despite the early problems, “the Dreamliner is a wonderful aircraft, with high passenger comfort, long range and low fuel consumption”, says CEO Bjorn Kjos.

This larger Dreamliner model accommodates more passengers and is more fuel efficient and environmentally friendly than the 787-8 model. Boeing has already made a series of test flights and this type is scheduled to enter commercial operation in 2014.

The company MG Aviation, based in New York and is a leasing company owned by Jordache Enterprises.

In addition, Norwegian will fly one flight per week between New York (JFK) to Bergen (BGO). The first flight from BGO will start on May 3, 2014. The first flight from JFK departs on May 9, 2014 and the route will be operated until September 27, 2014.

Finally, ALPA has issued this statement opposing Norwegian attempt to establish a subsidiary called Norwegian Air International in Ireland:

The Air Line Pilots Association, Int’l (ALPA) yesterday called for the U.S. Department of Transportation (DOT) to immediately reject Norwegian Air International’s (NAI) foreign air carrier permit application because the company appears to be attempting to evade its national laws and regulations to compete unfairly against U.S. airlines and their employees. The call came in an answer that ALPA filed in response to NAI’s application.

“Norwegian Air International was clearly designed to attempt to dodge laws and regulations, starting a race to the bottom on labor and working conditions,” said Capt. Lee Moak, ALPA’s president. “If successful, the company would gain a serious and unfair economic advantage over U.S. airlines in the competition for the business of international passengers flying to and from the United States. This exploitation of the laws intended to prevent labor law shopping cannot be allowed to stand.”

While Norwegian citizens control NAI, which is a subsidiary of Norwegian Air Shuttle (NAS), the company uses aircraft registered in Ireland and has applied for an air operator certificate from that country. It appears that its flight crews will work under individual employment contracts that are governed by Singapore law and that have wages and working conditions substantially inferior to those of NAS’s Norway-based pilots.

“If NAS is permitted to pick and choose the countries in which it establishes its subsidiaries and employs its flight crews, U.S. carriers will be put at a severe competitive disadvantage because the United States has one set of laws and regulations for all of its airlines,” said Capt. Moak. “The U.S.-EU air services agreement was never intended to allow this type of scheme, which games the system for competitive economic advantages.”

ALPA maintains that the NAI scheme raises the specter of the “flag of convenience” business practice that undermined the U.S. maritime industry by allowing a vessel to be registered in a country different from its ownership and apply the country of registry’s laws to its operations. The practice precipitated the decline of the industry and the loss of tens of thousands of U.S. maritime jobs as companies flew the flag of countries with the weakest labor and tax laws and regulations.

Moak noted a quote by the AFL-CIO’s Transportation Trades Department in an opinion piece published today by Aviation Daily: “We must reject business models premised on scouring the globe for cheap labor no matter the consequences, and not pretend this is somehow acceptable competitive behavior.”

“The NAI scheme must be immediately and unequivocally rejected,” said Moak. “The DOT must not permit U.S. airlines and their employees to face an unfair competitive disadvantage from this runaway shop and swiftly dismiss NAI’s air carrier permit application.”

Moak also called on the Irish government to reject NAI’s attempt to register the aircraft in Ireland. “Ireland should not allow itself to be complicit in NAI’s avoidance scheme,” he concluded.

Copyright Photo: The Norwegian Long Haul Boeeing 787-8s are registered in Ireland. 787-8 EI-LNA (msn 35304) is pictured at Paine Field before the hand over.

Norwegian: AG Slide Show

Norwegian has technical problems with its two Boeing 787s

Norwegian.com 787-8 EI-LNA (02-Sonja Henie)(Apr) OSL (Norwegian)(LRW)

Norwegian Air Shuttle (Norwegian.com) (Norwegian Long Haul) (Oslo) is suffering with technical issues with its two delivered Boeing 787-8s and has called in Boeing to fix the problems according to this report by Reuters. Norwegian has been forced to ground the two 787s several times in recent weeks, due to problems with brakes, hydraulic pumps and power issues.

One of the 787s remains grounded in Oslo today due to problems with the oxygen supply to the cockpit.

Norwegian Long Haul is depending on the 787 to expand its long haul international route map. As reported, Norwegian plans to launch new routes between Scandinavia and Los Angeles (LAX), Oakland (OAK) and Orlando (MCO) in the spring of 2014.  At the same time Norwegian will launch a new route between New York (JFK) and Copenhagen.

Norwegian continues to launch new intercontinental routes as it takes delivery of more 787s.

Read the full report: CLICK HERE

Copyright Photo: Norwegian Air Shuttle.

Norwegian: AG Slide Show