SHARE
COPY LINK

NORWEGIAN

Norwegian okays order for 100 Airbus planes

Low-cost airline Norwegian has confirmed its order of 100 Airbus A320neo planes with a list price of $9.6 billion, Airbus said on Friday.

Norwegian okays order for 100 Airbus planes
Norwegian's administrative director Bjørn Kjos announced plans for the deal in January (Photo: Heiko Junge/Scanpix)

The order, initially placed in January, was part of a massive deal to acquire the latest fuel-efficient aircraft that will put Norwegian in a strong position to further erode the position of traditional carriers.

"Brand new, fuel-efficient aircraft are necessary for us to continue to grow," Norwegian chief executive Bjørn Kjos was quoted as saying in a statement.

The 10-year-old airline also ordered 122 Boeing 737s, including 100 next-generation MAX8s, in January.

The Airbus order is the first ever for the rapidly-growing Norwegian, whose fleet has until now consisted only of Boeings.

Norwegian, once a tiny regional player in Norway, has battered its main rival, beleaguered semi-public Scandinavian carrier SAS, since being restructured as a low-cost airline in 2002.

Kjos said at the beginning of this year it aimed to expand its fleet from 62 planes to 241 within 10 years and its European market share from two to six percent.

Airbus promises that the A320neo, which is due to enter service in 2015, will cut fuel consumption by 15 percent.

The announcement of the new version of its workhorse medium-range single-aisle aircraft last year set off a boom in orders from airlines that have been struggling with higher fuel prices, the top expense for many carriers. Rival Boeing later followed with its new version of the 737.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

AIRLINE

Airline Norwegian posts 15 billion kroner loss after nightmare 2020

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

A file photo of a Norwegian Air Shuttle plane in Finland.
A file photo of a Norwegian Air Shuttle plane in Finland. Heikki Saukkomaa / Lehtikuva / AFP

Low cost airline Norwegian has registered a loss of 14.9 billion Norwegian kroner for 2020, a year in which the company saw a drastic reduction in passenger numbers and was on the brink of bankruptcy.

The company published its annual results on Friday, revealing the huge operating loss.

Norwegian’s 2019 result, a loss of around 1.7 billion kroner, had put the company in a difficult position even prior to the outbreak of the Covid-19 pandemic.

The coronavirus outbreak and its consequent travel restrictions reduced the company’s passenger numbers to 6.9 million in 2020. That is 29 million fewer than in 2019.

Not all of the loss is due to fewer passengers. Around half of the company’s devaluation is attributed to a depreciation of the value of its aircraft fleet, news wire Ritzau reports.

“2020 was an exceptionally demanding year for air travel and for Norwegian,” CEO Jacob Schram said in a statement on the annual results.

“In light of that, the result for the fourth quarter (of 2020) is not surprising. Unfortunately, the majority of our employees are furloughed and many have lost their jobs – in part because of the closure of long distance services,” he added.

The company was already in debt prior to the pandemic and is now under bankruptcy protection in Ireland and is undergoing similar process in Norway.

READ ALSO:

SHOW COMMENTS