“New Norwegian” Norse Atlantic Airways looks to raise $150 million of capital
The airline, which is looking to take over the abandoned low-cost long-haul business model of Norwegian Air, announced its intentions to list on the Oslo stock exchange.
Norse Atlantic Airways (NAA) announced its intentions to publicly list its shares on the Euronext Growth Oslo stock exchange on March 24, 2021. The airline looks to raise as much as around $150 million (NOK1.275 billion) of capital, as it priced its shares at NOK 20 ($2.3) per share.
The airline, which looks to replace Norwegian Air’s abandoned low-cost long-haul routes between Europe and the United States, indicated that the raised capital would go towards the establishment of the airline. Namely, approximately $4 million would go to lease deposits for up to 12 aircraft and approximately $24 million would be spent on start-up costs, including pre-delivery Operational Expenditures (OPEX). Overall, the gross working capital of Norse Atlantic Airways would be around $80 million, while additional $9 million would be spent on transaction costs, as well as $33 million dedicated to licensing and marketing costs, amongst other “general corporate purposes,” indicated the announcement by the company.
NAA expects to begin trading its shares on the Oslo stock exchange on April 12, 2021.
The newly-established carrier looks to replace Norwegian Air’s long-haul operations, as the latter announced it would no longer operate low-cost long-haul flights in January 2021. NAA, which brought on two former Norwegian executives, namely ex-CEO Bjørn Kjos and Bjørn Kise. The airline’s new CEO is Bjørn Tore Larsen.
Norse Atlantic Airways expected to begin the sale of flight tickets fall of 2021, with the first flights taking off in December 2021. The carrier would operate 12 former Norwegian Boeing 787 aircraft, which according to Larsen, NAA obtained at “around half price,“ as he was quoted by local media.
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