Wednesday, February 24, 2016

Norwegian Airlines Goes Long With $200 Seats To America

A recent delivery of a Boeing 787-9 to Norwegian Air marks the beginning of an onslaught of 29 more 787-9's for its stable of aircraft. More importantly it will overmatch its own 291 seat count found with the 787-8, by the 787-9's additional 53 seats, configured with 35 premium and 309 economy seats, and totaling 344 seats going to and fro in a 787-9. 

The fleet replacement/expansion of 787-9's is also mentioned as 30 units, and would give Norwegian Air 10,320 additional daily seats while adding more destinations to its portfolio. The latest news includes the US to Europe ride for $200 per economy. I would suspect Premium is a value buy for the space given, and should be only a few reasonable dollars more. The eight 787-8's have a total seat capacity of 2,328 seats for service. Counting types, orders and options; Norwegian Air will have 16,088 daily seats when all frames eventually arrive.

It is also an important Norwegian note: Norwegian Air had leased 4 787-9's during 2014, and also has a committed-purchase for 19 787-9's from 2015. However a total of 11 787-9s come from lessor's prior to the Norwegian order for 19 787-9's, making up the 30 ordered with an additional 10 optioned. 

On another note, it had already received its original 3 ordered, 787-8 and then the additional five leased 787-8, since it first ordered in 2005. 

Winging IT's own rough calculation shows 19 787-9's ordered by Norwegian Air. The 30 787-9 comes by ATWonline  calculations for both leased and purchased 787-9's by Norwegian Air.

"Norwegian, Europe’s third-largest LCC, has 30 Boeing 787-9s on order, as well as 100 Boeing 737 MAX, 100 Airbus A320neo and 34 Boeing 737-800 aircraft."

The first ever Norwegian 787-9 comes from MG leasing to Norwegian Air. The aforementioned is from a separate block of 4 leased with MG in 2014. The leased is accounted for; by the "first delivery" of a 787-9 this month, and then a following three 787-9's are in the Boeing build queue under the same MG name. 

The following three will be up for potential delivery during the remainder of 2016. Norwegian Air holds an additional option for 787-9s of 10, thus indicating a high density get-you-there seating arrangement from Norwegian Air's order history. The obvious business model is based on a low seat price going to high priority destinations for Pleasure and secondly for Business in relative premium comfort.