Norse Atlantic Airways is still in start-up mode, with the airline delaying its commencement of services due to fuel prices and market instability.
As such, the airline is to sublease four of its Boeing 787 aircraft to Air Europa.
The short term sublease will comprise of two Boeing 787-8 and two Boeing 787-9 for 18 months. For the airline, the sublease will do one important thing: create cash flow.
The aircraft will be delivered to Air Europa in the second quarter. The sublease is subject to completion of documentation, expected to occur around the end of April.
Preparing to start ticket sales
Norse Atlantic Airways was due to start selling ticket in March, as well as operating aircraft by then. Instead, ticket sales will now commence later in April (although nearly half of the month has already elapsed).
The airlines plans call for the airline to operate services from June.
Norse plans to serve destinations including Oslo, Paris, London, New York, Los Angeles and Florida. The route network will be announced when ticket sales are launched.
In Quotes
Norse CEO Bjørn Tore Larsen said
“This sublease agreement with Air Europa provides a compelling opportunity to generate positive cash flow from aircraft that we were not planning to fully utilize in our start-up phase. The agreement strengthens our already solid financial position as we continue to stay true to our strategy of cautiously entering the market and ramping up based on customer demand,”
He adds on the network
“We strongly believe that the demand for transatlantic travel will eventually bounce-back with full force because people will want to explore new destinations, visit friends and family and travel for business. Norse will be there to offer attractive and affordable flights on our more environmentally friendly and fuel-efficient Boeing 787 Dreamliners to both leisure and cost-conscious business travelers,”
It’s one way of getting cash
With nearly everything being outgoing so far, it will be a welcome thing for Norse Atlantic Airways to sublease part of their proposed fleet of 15 aircraft – with the airline having 10 of them already.
Having four aircraft away will no doubt require a little shuffling in Norse’s launch and network plans – although the statement of “they were not planning to fully utilise those aircraft in the startup phase” bears thinking about – there might be a demand for their services- but even they’re not sure how the network is going to be shaped over the next 18 months due to outside infuenes.
It’ll be interesting to see how this impacts the airline as it is built out – because the other big money-maker – the summer flying season is around the corner…
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Welcome to Economy Class and Beyond – Your no-nonsense guide to network news, honest reviews, featuring in-depth coverage, unique research, as well as the humour and madness I only know how to deliver.
Follow me on Twitter at @EconomyBeyond for the latest updates! You can follow me on Instagram too!
Also remember that we are part of the BoardingArea community, bringing you the latest frequent flyer news from around the world.
