Norwegian Air has reconfirmed plans to purchase 50 Boeing 737 MAX 8 aircraft in an “agreement in principle” with the US manufacturer.
The deal also includes options for an additional 30 aircraft.
The initial 50 new generation 737s are due to be delivered between 2025 and 2028, closely corresponding to current aircraft leases expiring.
The agreement is subject to various closing conditions, which are due to be concluded by the end of June.
The Scandinavian budget carrier said it intends to finance the outstanding balance of pre-delivery payments through positive cash flow from operations.
A “significant share” of the aircraft will be owned by the company, ensuring an “optimised and balanced” aircraft financing structure.
Subsequent to the conclusion of these agreements, the airline estimates to record a net gain of approximately NOK2 billion, according to Norwegian.
The B737 MAX 8 is approximately 14% more fuel-efficient compared to the previous-generation aircraft, putting the company on course to achieve a target of cutting emissions by 45% by 2030.
Norwegian board chairman Svein Harald Oygard, 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 also allows us to serve our customers with state-of-the-art aircraft that can run increasingly on sustainable aviation fuel.”
Chief executive Geir Karlsen added: “The overall terms achieved are attractive for Norwegian, and the deal fits well with our long-term fleet strategy and route program.
“It will enable us to serve our customers with modern fuel-efficient aircraft with the latest technology, significantly reducing our carbon footprint. The deal will also strengthen the company’s equity considerably, further solidifying Norwegian’s financial position.”