Jun 16, 2017: Arctic Aviation Assets (AAA), Norwegian´s fully owned subsidiary has ordered two new Boeing 737 MAX aircraft as well as signed a Letter of Intent (LOI) for a sale-leaseback transaction of 11 Boeing 737-800 aircraft presently operated by Norwegian.
Norwegian has exercised its options to order two new Boeing 737 MAX aircraft that will be delivered during 2018. AAA now has a firm order of 110 Boeing 737 MAX aircraft and 90 remaining purchase options. The LOI for sale-leaseback of 11 aircraft is expected to lessen the Norwegian Group’s financial net debt by around NOK 1.4 billion based on the currency exchange rate NOK/USD of 8.5.
On May 4th 2017, Norwegian declared 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 about NOK 2.3 billion. 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.