Norwegian Air will close a deal to acquire 10 of its leased Boeing 737-800s by the end of the quarter, the airline announced Monday.
The company said the transaction is on favorable terms and will be a key step toward securing the future of its fleet.
Norwegian Air currently operates a total of 62 737-800 NG jets in addition to 25 737 MAX 8s.
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“The overall terms achieved are attractive for Norwegian, and the transaction fits well with our long-term fleet and ownership strategy. This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning,” said CEO Geir Karlsen.
Thanks to the deal, the carrier expects to record a non-recurring gain of NOK 570 million, equivalent to US$51 million.
“This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities,” the company explained.
The end of leasing payments for the aircraft is expected to generate annual net savings of NOK 200 million (US$18 million).
Although less efficient than the 737 MAX, the 737 NG is still a profitable aircraft, and one that, amid a shortage of used jets and problems with the production of new aircraft, is still profitable.
