Norwegian Air and Boeing have resolved their dispute and are now back in business together.
Norwegian Air announced earlier today that it had resolved its dispute with American-based airline manufacturer Boeing. As a result, Norwegian Air has agreed to acquire 50 Boeing MAX aircraft for an undisclosed amount.
Boeing is an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles globally.
Norwegian Air said it would acquire 50 Boeing 737 MAX 8 aircraft and secured options for a further 30 of the planes at an undisclosed amount. This latest development is a huge boost for Boeing after the brief dispute between the two companies.
Earlier this year, Norwegian Air threatened it would end its business with Boeing and start ordering planes from rival Airbus.
For Norwegian Air, the acquisition of the 50 Boeing 737 MAX 8 signals a return to aircraft ownership. The company was forced to resort to leasing deals during its bankruptcy proceedings that rescued Norwegian Air last year.
Svein Harald Oeygard, the Chairman of the Norwegian Air board, said;
“This is a landmark deal that sets out a path whereby Norwegian will own a large share of its fleet. This will result in lower all-in costs and increased financial robustness, enabling us to further solidify our Nordic stronghold.”
The deal includes compensation to the Norwegian company as a settlement of previous disagreements over MAX and Dreamliner aircraft deliveries and technical issues.
As a result, Norwegian Air will receive 2 billion Norwegian crowns ($212.2 million) as a settlement.
The financial gain will be booked once the deal is signed by the end of next month, boosting the company’s equity.
Norwegian Air said the first 50 aircraft will be delivered between 2025 and 2028, aligning with the current lease expirations.
