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Squawks & HeadlinesNorwegian Airline Buys 222 Jets

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Norwegian Airline Buys 222 Jets

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HIGH FLIER: Budget carrier Norwegian Air Shuttle ASA on Wednesday said it has ordered 222 new aircraft from Boeing and Airbus in separate deals with a combined worth of $127 billion in list prices. (www.nytimes.com) More...

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preacher1
preacher1 0
Keep 'em honest
preacher1
preacher1 0
Well, 1/2 is better than nothing. Something changed to take them to the AB stable
fkaiserccs
Frank Kaiser 0
If 122 Boeing aircraft are valued at $11.4 billion, how can 100 A320s raise that value to $127 billion?
meruns
I heard that Boeing doesn't have the capacity to be able to keep up with the demand. That's why American's was over have A320 NEO's. Any truth to this?
fkaiserccs
Frank Kaiser 0
From the BBC: The 127 billion is Norwegian krone, equivalent to $21.5 billion. Crass error on the part of the NY Times!

Low cost airline Norwegian Air Shuttle has said it has signed a deal to buy 222 new planes from Airbus and Boeing for a total cost of 127bn Norwegian krone ($21.5; £13.9bn).
chalet
chalet 0
At times when traffic is not growing anywhere in the world except for a few isolated areas, I still wonder the wisdom of certain airlines of buying and buying aircraft several dozens at a time. Has commercial aircraft become a commodity (LOL!)
preacher1
preacher1 0
Does make you wonder, don't it?lol
conmanflyer
connor oslie 0
after that whole NLRB thing, Boeing probably does not want to open a second line for the 737Max.
preacher1
preacher1 0
A big part of the problem is that they all made big buys way back yonder when the jet age arrived in the first place, and with some exception, all got old at the same time, consequently as time has evolved, that replacement cycle has continued. It is not staggered out. You would think though that with demand down, and all trying to scale back capacity, that the orders would scale back somewhat. They are expensive, to the point that there was a squawk either here in today's or yesterday about renting(leasing) or buying
dbrooks84
David Brooks 0
Actually Norwegian Air Shuttle is not that old of a company. Started at the beginning of 1993. Exactly what Nor Shuttle decided to buy from two sources leaves me scratching my head. Hedging? What type of A320s are they buying? A321s? They have been acquiring a lot of Boeing 737-800 and use high density seating - 186-189 one class. I read somewhere about a month ago, they were going to phase out the remaining Boeing 737-300 as fast as Boeing can deliver new -800s. Why this "explosive" growth? You can also look a Lion Air in Indonesia with huge order. Lion Air has already walked over some of there early B737-9GP(ER)(WL) planes already. Lion Air's high density with 213 Y seats on the -900s.

This buying spree that airlines are into now makes you wander if the economy is good enough (world wide) to substantiate these acquisitions. AA/AMR is in bankruptcy now so it will be a good question whether Boeing or Airbus will sell all that AA has set out to get.
preacher1
preacher1 0
Well, it is probably just in getting the delivery slots. You don't build planes overnite. Note that these are 2016 delivery, 4 years away. Money won't change hands until they get ready to build them. It is just a projection for all involved. As far as 2 mfg's, you will start to see more of that as AB gets stronger. Boeing has gotten kinda lax and a little pricey since they bought out MD. AB just puts another player in the field to keep them competetive.
chalet
chalet 0
You can add Kingfisher from India which placed orders like there will be no tomorrow for all kinds of planes includng the mamooth AB 380 and now is on the verge of collapsing.
Derg
Roland Dent 0
Never mind the fact that AB is underwritten by the EUR taxpayer. The JetBlue fleet of A320s could have a bird strike everyday of the week and the engine maufacturer would foot the tab. Norway has so much income from oil and gas anyway so all round they cannot loose. They are AAA credit rated. So both AB and Boeing are taking zero risk in the outlay for materials and labour. Blue chip business.
chalet
chalet 0
No Roland, the Norwegians are not like the oil-rich Arab countries, they manage their wealth very carefully and their government would never splurge on this crazy idea. Where is the traffic for over two hundred planes.
Derg
Roland Dent 0
Chalet..Norway is perfectly placed to lease these machines to the huge Russian market. Russia could not raise the underwriting with the current economic situation. I do not agree that the mid east oil producers are any more, or less, prudent than Norway. No Chalet, given the derating of many of the EUR states credit the Norweigians have made a strategic move very much to their advantage. I would venture they could realise an immediate sale of these machines as they roll out of the factory. This is blue chip business that can only increase in value. There are several other strategic moves afoot in Scandinavia to ensure an independent future for all of W Europe.
chalet
chalet 0
What you are suggesting (leasing 222 brand new aircraft to the Russians and other far fectched "business" ideas) belong to the confines of a Casino. It is obvious that you never met one single Norge, ever.
Derg
Roland Dent 0
OK lets say that China and India have plans to bulid a 3000/4000 mile machine with an unproven record...S America already has Embraer. Russia, on the Asian Steppe is ideally placed from Vladivostok, Kiev and Moscow to serve Asia. Japan has is coughing a little and is happy supplying Boeing anyway..Mitsubishi. 222 brand new conservative mid range machines can and will be mopped up. As far as meeting Norges goes you are correct, but this is not small stuff and Norway has taken the lead where others could not and I can tell you many would like to be able to make this move. Global world....ONEWORLD...haha..Frankfurt will be happy to finance this. Rock solid investment.
preacher1
preacher1 0
You 2 will never agree.lol. Bottom line is, for whatver reason, the Norwegians singed the letter of intent, and it is their money and only they know their plans. They didn't announce them. To boot, as I said earlier, delivery here is not until 2016, 4 years away. A lot can happen in that time and before any money changes hands.