Norwegian (Oslo Gardermoen) has placed a tentative order with Boeing (BOE, Washington National) for fifty B737-8s with options for another 30 units, destined mainly for fleet renewal rather than growth.

The carrier said deliveries of the 50 firm-ordered jets are scheduled for 2025-2028, corresponding to the expiration of its current B737-800 leases. As such, the order entails a "limited net increase of the company's current fleet".

The contract is expected to be finalised by the end of June 2022, subject to closing requirements.

"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," chairman Svein Harald Øygard said.

"The overall terms achieved are attractive for Norwegian, and the deal fits well with our long-term fleet strategy and route program. The deal will also strengthen the company's equity considerably, further solidifying Norwegian's financial position," Chief Executive Geir Karlsen added.

The airline plans to finance the pre-delivery payments from its operating revenues. It said it would own "a significant share" of the B737 MAX 8s, indicating that some of them might be subject to sale/lease-back transactions going forward. The financial impact of the transactions will result in a net gain of around NOK2 billion Norwegian kroner (USD211 million) for the airline.

The ch-aviation fleets module shows that following its restructuring, Norwegian operates sixty-three B737-800s placed with Norwegian Air Shuttle AOC (37 units, 8.8 years old on average) and Norwegian Air Sweden AOC (26, 8.4 years), as well as three B737-8s placed on the Swedish AOC. The majority of aircraft are leased from various lessors, with Norwegian owning only three B737-800s and one -8, according to the ch-aviation fleets ownership module.

Norwegian Group had eighteen B737-8s in its fleet before the type's March 2019 grounding but phased most of them out during the restructuring in the midst of the COVID-19 pandemic.

Separately from the new announcement, Norwegian retains a firm order for seventy-eight B737-8s placed in 2012 as the formal termination of the contract remains subject to litigation in the US. It also has a recent commitment to lease ten units from AerCap.