Boeing Locks Down $11.4 Billion Deal With Norwegian Air

Boeing (NYSE:BA) and Norwegian Air have announced a firm deal where 100 fuel-efficient 737 MAX planes and 22 Next-Generation 737s will be shipped to the low-cost airline.

Norwegian’s CEO Bjorn Kjos said in a statement, “We have secured our fleet renewal for years to come and are very pleased with the agreement with Boeing.” He added, “Boeing has played a major part in our strategy to develop a cost-efficient and environmentally friendly operation with high customer satisfaction. We are very happy to continue our valuable cooperation and we are proud to be the first 737 MAX customer in Europe.”

Boeing will begin delivery in 2016, and intends to finish all of the 737 MAX planes by 2017. The MAX plane is a variant of the world’s best-selling airplane, and will have an engine design that should provide a 10-12% reduction in fuel burn and and CO2 emissions. Boeing’s future stock prospects will depend in large part on how well it can provide more fuel-efficient engines that cut costs.

Norwegian Air also completed the renewal of its fleet by inking a deal with Airbus for an additional $10 billion. Norwegian Air is currently the third largest low-cost airline in Europe.

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