Norwegian to purchase ten Boeing 737-800 aircraft
Norwegian has announced an agreement to buy ten Boeing 737-800 aircraft that are currently a part of its leased fleet. The transaction is expected to close in the first quarter of 2025.
The transaction is at favourable terms and represents a key step in securing Norwegian’s future fleet. The move will enhance financial flexibility in line with the long-term strategy and reduce overall ownership cost.
“The overall terms achieved are attractive for Norwegian, and the transaction fits well with our long-term fleet and ownership strategy. The aircraft being acquired are an integral part of Norwegian’s existing fleet and will through this deal continue to operate across our attractive and growing route network. This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning,” concludes CEO Geir Karlsen.
The transaction will initially be funded through the Company’s cash on hand and is expected to close in the first quarter of 2025. Norwegian is in the process of securing long term financing after completion through a combination of financing arrangements.
On completion of the transaction, Norwegian expects to record a non-recurring gain of approximately NOK 570 million. This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities. Additionally, the transaction is expected to generate recurring cost savings net of financing costs of an average of approximately NOK 200 million per year.