Norwegian Air $5 Billion Boeing Deal: Oslo-Based Airline Orders 19 Boeing Co. 787s As Part Of Its Aim To Capture The Long-Haul Market

With Norwegian Air's $5 billion Boeing deal, it hopes to double the size of its current Dreamliner fleet to make discount flights profitable. The airline company has announced that it has already settled a negotiation to order 19 Boeing Co. 787s and a purchase option to include 10 additional Fornebu aircrafts, according to the statement released on Thursday, Oct.22.

The move was aimed at increasing its long-haul fleet fivefold to 38 aircraft in a period of five years. According to SKIFT, deliveries of the Boeing planes will begin in 2017. It is said that Norwegian Air's $5 billion Boeing deal was the largest in Europe. At present, the Oslo-based airline is operating eight 787-8s while 11 larger -9 variant orders were already in place.

"This order of 19 new Dreamliners is a major milestone," Chief Executive Officer Bjoern Kjos said. The jet is "crucial to our future growth and competitiveness in the long-haul market. Not least, the Dreamliner offers the best passenger experience."

According to Bloomberg, Norwegian Air is living up to its goal to thrive in the long-haul market. Since May 2013, Norwegian Air has offered long-haul flights out of Scandinavia through its 787-8s. In 2014, it expanded its routes from London Gatwick to New York, Los Angeles and Fort Lauderdale, Florida. Norwegian Air's $5 billion Boeing deal will be financed by commercial loans and export credits, Chief Financial Officer Frode Foss said.

The airline company has already ordered in 2012, 100 re-engined Max variants of Boeing's short-haul 737 and 100 of Airbus Group SE's that cost around $21.5 billion. Nowegian Air is leasing out planes that are not needed by the company.

After closing Norwegian Air $5 billion Boeing deal, Boeing has increased its production of Everett-built 787-9 than its present 787-8 model. It is said that the company is aiming at the production of 12 Dreamliners a month until it reaches to 14 monthly by 2019.