Norwegian has announced a strategic move to solidify its fleet, agreeing to purchase ten Boeing 737-800 aircraft currently operating within its leased network.
This transaction is anticipated to finalize in the first quarter of 2025. It marks a significant step towards bolstering the airline’s financial stability and operational efficiency.
The acquisition, secured under favourable terms, aligns with Norwegian’s long-term fleet strategy.
By owning these aircraft, Norwegian aims to reduce overall ownership costs and gain greater financial flexibility. This decision will empower the airline to navigate future market fluctuations with increased agility.
Strategic Acquisition of Leased Aircraft
“The terms achieved are highly advantageous for Norwegian,” stated CEO Geir Karlsen. “These aircraft are vital to our existing fleet.”
“This deal ensures their continued operation across our expanding route network. We foresee both immediate and sustained cost savings, alongside enhanced flexibility for future fleet planning.”
Norwegian will initially fund the purchase with its existing cash reserves. Following the completion of the transaction, the airline plans to secure long-term financing through a combination of tailored financial arrangements.
Upon closing, Norwegian anticipates a one-time gain of approximately NOK 570 million. This gain reflects the advantageous purchase price and the subsequent reduction in lease liabilities.
Furthermore, the transaction is projected to generate recurring annual cost savings, net of financing costs, of approximately NOK 200 million.
Conclusion
This strategic acquisition underscores Norwegian’s commitment to strengthening its position as a leading Nordic aviation company.
Headquartered in Fornebu, Norway, the Norwegian group boasts over 8,200 employees and owns two prominent airlines: Norwegian Air Shuttle and Widerøe’s Flyveselskap.
The recent acquisition of Widerøe in 2024 aims to seamlessly integrate the two airlines’ networks, providing passengers with enhanced travel options across the Nordic region.
This move reaffirms Norwegian’s dedication to providing efficient and reliable air travel while optimizing its financial performance.
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