Largest Ever Aircraft Acquisition in Europe: 222 aircraft

[Stratofreighter]

http://www.aviator.aero/newswire/index. ... w-aircraft

Largest Ever Aircraft Acquisition in Europe: Norwegian purchases 222 new aircraft

Norwegian (NAS) has today signed an agreement with both Airbus and Boeing for delivery of a total of 222 new aircraft.

The order includes 122 aircraft from Boeing; 100 of the new Boeing 737 MAX8 and 22 Next-Generation 737-800.

Norwegian will be the European launch customer for Boeing’s new aircraft. The Airbus order includes 100 Airbus A320neo.

The total agreement is the largest ever in European aviation history and has a contract value at list prices of NOK 127 billion. T
he order includes additional purchase right of 150 aircraft from both manufacturers.

Lots more info at http://www.aviator.aero/newswire/index. ... w-aircraft .

[ehusmann]

Wow, that came pretty much out of the blue! But my second thought is that this must be the beginning of the end for at least one LCC in Europe. I cannot believe the total market will keep growing with these kind of numbers. These are the numbers I could find on Airfleets.net, Airbus.com and Boeing.com:

airline		flying	order

Ryanair		238	27
easyJet		201	35
Air Berlin	110	62
Norwegian	62	58+220
Vueling		47	0?
Wizzair		34	100

If you ask me, the easyJet and Ryanair orders are for replacement and no longer for growth. But with Norwegian and WizzAir having large numbers on order now, they will have to grow outside of their home markets, which will mean tapping into the markets of easyJet, Ryanair and Air Berlin. The way I see it, that is only possible if somebody gives up market share. Most likely candidates in my opinion are Air Berlin and Ryanair. Especially Air Berlin is in big financial troubles already. Ryanair on the other hand, seems to be having difficulty sourcing new planes. Both Boeing and Airbus are not too keen on striking a big deal with them, so either they will have to pay a much higher price, or they will have to go Chinese. Neither option seems to be very attractive.

My prediction: this LLC bubble that is growing will bust within not too long and Air Berlin or Ryanair will disappear.

Erwin

[Hurricane]

Do not forget that Vueling will also see competition from Iberia Express launching this/next month.

That Air Berlin is in trouble is also noticed by their move towards the Oneworld-alliance, brand new planes flown straight towards Asia and the line of Ryanair new 737 in the Mohave is always 5-7 airplanes. Used bodies are also becoming more difficult to get rid of as the oversaturate the 2nd hand market.

We'll see what happens

[ehusmann]

Do not forget that Vueling will also see competition from Iberia Express launching this/next month.

I am not so sure of that. First of all Iberia Express is not a new airline but a new subsidiary to take over European operations. Iberia short haul is performing very badly for years and this is just a move to cut costs.
Having said that, Vueling is of course operating in a very difficult market. Spain is doing not very well, the holiday market is getting difficult and all major LCCs are operating many flights into their market. Yet, I think they have at least found their own focus market and will do relatively well in it.

Erwin

[Wildpicture]

Great news for these aircraft companies. It also means a lot of jobs. But I do have some thoughts on such a large order from such a small airline company. The entire order is mentioned to be worth 16.6 billion (miljard) euro. That is an astronomical investment in these days of economic troubles. What are the riscs for the company and the banks financing this order? Of course you can "insure" these riscs, but only at a high premium. It just makes me wonder.