Norwegian´s fully owned subsidiary Arctic Aviation Assets (AAA) has ordered two new Boeing 737 MAX aircraft and signed a letter of intent for a sale-leaseback transaction of 11 Boeing 737-800 aircraft currently operated by Norwegian.
Norwegian ordered two new Boeing 737 MAX aircraft that will be delivered during 2018. Following this announcement, AAA now has an order of 110 Boeing 737 MAX aircraft and 90 remaining purchase options. The letter of intent for sale-leaseback of 11 aircraft is expected to reduce the Norwegian Group’s financial net debt by approximately NOK 1.4 billion ($ 17 million).
On May 4, 2017, Norwegian announced the sale-leaseback of eight new Boeing 737-800 aircraft to be conducted in the second quarter. Following the sale of 19 aircraft (eight new deliveries and 11 existing), the Norwegian Group estimates a positive net cash flow impact on of approximately NOK 2.3 billion ($27 million). These aircraft will be leased back to Norwegian.
“By selling some of our older 737-800 aircraft and ordering two additional 737 MAX aircraft, we are taking another step towards replacing our current fleet with even more fuel efficient and more environmentally friendly aircraft. This allows us to enhance our operation and reap financial benefits. Norwegian’s strategy is to operate and own the newest state-of-the-art fleet of aircraft, giving passengers high-quality comfort and the shareholders as high a return as possible,” said Bjørn Kjos, CEO of Norwegian.