Norwegian signs agreements to lease three new 787-9 Dreamliners

Norwegian has signed agreements to lease three new Boeing 787-9 Dreamliners for its long-haul operation. Two of the aircraft will be delivered in 2016 and one in 2017. This is the brand new, more environmentally friendly and even larger Dreamliner model, which is scheduled to enter commercial service this year.

Norwegian continues to expand its international operation by signing agreements to lease three Boeing 787-9 Dreamliner aircraft. Two of the aircraft are scheduled to enter service in 2016, while the third is scheduled to enter service in 2017. Today, Norwegian has five 787-8 Dreamliner aircraft in its fleet and another three on order. In addition, the company has six 787-9 Dreamliners on order. With the new order announced today, Norwegian will have 17 aircraft in its long-haul fleet in 2018.

Facts about Boeing 787-9 Dreamliner:

• Accommodates up to 20 % more passengers than the 787-8 Dreamliner
• 6 meters (20 feet) longer than the 787-8
• Significantly increased cargo capacity compared to the 787-8
• 8% lower fuel consumption per seat than today’s model, which also means lower emissions
• Can fly longer than the 787-8 (depending on cabin configuration).

The airlines company reported its first quarter results for 2014. The pre-tax profit (EBT) was -813 MNOK. Despite a seasonally weak quarter, the passenger growth is strong and the load factor high. The quarterly results are affected by the additional costs associated with wet-leasing replacement aircraft on long-haul routes, as well as a weaker Norwegian currency (NOK).  

The total revenue in the first quarter was 3.55 BNOK, up 22 percent from the same quarter previous year. The company carried 4.9 million passengers, a growth of 24 percent. The company’s traffic growth (RPK) was up as much as 50 percent, which means that Norwegian’s passengers fly considerably longer distances than they did a year ago.

The first quarter results are also characterized by a solid production growth (ASK) with an increase of 48 percent. The load factor was 77 percent, up one percentage point compared to the same quarter last year. Adjusted for one-off costs and a weak Norwegian currency (NOK), the unit cost (CASK) was reduced by nine percent.

Additional costs related to the long-haul operation amounted to 78 MNOK in the first quarter. This includes wet-lease costs, additional fuel, as well as costs for accommodation, food and drink for delayed passengers who have been affected by the technical and operational problems associated with the long-haul operation.

During the first quarter, Norwegian has taken delivery of five new Boeing 737-800s and one Boeing 787-8 Dreamliner. This morning, Norwegian announced an order of an additional three 787-9 Dreamliners. Norwegian currently has five Dreamliners in its fleet as well as 12 on order. See separate press release.

“Traditionally, the first quarter is seasonally weak and in addition the figures have been significantly affected by a weak Norwegian currency (NOK) against the dollar and the euro. Also, the wet-lease of aircraft has negatively impacted the quarterly result. On the positive side, the passenger growth is strong and the load factor continues to rise, even with the company’s strong production growth. The strong competition in Norway reflects the prices, but Norwegian is becoming increasingly equipped to meet this competition,” said CEO Bjorn Kjos. - See more at: http://www.traveldailynews.com/news/article/60370#sthash.NuQy61c7.dpuf