Norwegian Air Shuttle to purchase 10 Boeing 737-800 aircraft

OSLO: Norwegian Air Shuttle ASA (Norwegian) announced Monday it has entered into an agreement to purchase 10 Boeing 737-800 aircraft currently on lease to the airline.

This transaction marks a significant step in securing the company’s future fleet, enhancing financial flexibility, and increasing asset ownership to support long-term operational and strategic growth, alongside a reduction in overall ownership costs.

Expected to close in the first quarter of 2025, the acquisition is subject to customary closing conditions. Initially, it will be funded through Norwegian’s cash on hand, with the company securing long-term financing through a combination of arrangements post-completion.

Norwegian expects to record a non-recurring gain of approximately NOK 570 million upon completion. This gain reflects favorable pricing for the aircraft and the corresponding reduction in existing lease liabilities. Additionally, the transaction is projected to generate annual recurring cost savings, net of financing costs, averaging NOK 200 million.

CEO Geir Karlsen commented on the deal’s advantages, stating, “The overall terms achieved are attractive for Norwegian and fit well with our long-term fleet and ownership strategy. The aircraft being acquired are integral to Norwegian’s existing fleet and will continue operating across our growing route network. This move is expected to deliver both short- and long-term cost savings, and provide additional flexibility for future fleet planning.”

Norwegian remains committed to prudent balance sheet management and will continue to explore opportunities to optimize its fleet composition in alignment with long-term strategic and financial objectives.