Norse Atlantic Airways Seeks Lifeline in Leasing Deal with Asian Carriers
Norse Atlantic Airways is considering leasing its Boeing 787s to two Asian airlines in an effort to generate stable revenue and offset dwindling cash reserves.
The Norwegian carrier has been struggling with low cash reserves and rising fuel costs, which have forced it to seek out a new partner for the lease of up to six Boeing 787 aircraft. The negotiations are reportedly underway with Pakistan International Airlines (PIA) and Biman Bangladesh Airlines, both of which are interested in leasing the aircraft on a long-term basis.
The terms of the lease agreements remain unclear, but could range from a dry lease (just the aircraft) to a wet lease (including crew, maintenance, and insurance). Leasing aircraft is seen as a way for Norse to generate consistent revenue and support the airline in returning to a surplus through guaranteed income.