Norwegian to Purchase 10 Boeing 737-800s From Current Lease Arrangements, and More
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Norwegian Will Convert 10 Leased Boeing 737-800s to Ownership
Norwegian Air Shuttle has announced an agreement to purchase ten Boeing 737-800 aircraft that are currently part of its leased fleet.
The transaction, expected to close in the first quarter of 2025, has been secured on favorable terms and represents a strategic move to enhance the airline's financial flexibility while reducing overall ownership costs.
Key Points
- The acquisition will be initially funded through Norwegian's cash reserves, with long-term financing arrangements to follow after completion
- Upon completion, Norwegian expects to record a non-recurring gain of approximately NOK 570 million (about $50.7 million)
- The airline anticipates recurring annual cost savings of around NOK 200 million ($17.8 million) net of financing costs
- CEO Geir Karlsen stated that the aircraft will continue to operate across Norwegian's existing route network
- The move aligns with Norwegian's long-term fleet strategy and is expected to provide additional flexibility for future fleet planning
- The airline is also awaiting delivery of 50 new 737-8s, indicating continued fleet expansion plans
What It Means
With this move, Norwegian is trying to strengthen its balance sheet while maintaining operational continuity.
By transitioning from leasing to ownership, the airline is likely aiming to reduce long-term operational costs and gain more control over its assets.
