Scandinavia’s second-largest airline, Norwegian Air Shuttle ASA, has purchased three new Boeing 737-800 aircraft that were previously leased to the airline, the company announced on July 8.
Norwegian adds three aircraft to its Boeing 737-800 fleet
The airline is expanding its fleet with the purchase of these new aircraft. Earlier this year, Norwegian had purchased ten Boeing 737-800 aircraft, as per an announcement on March 3. The company has already completed the long-term financing for that particular purchase.
This current purchase is meant to help the low-cost Scandinavian airline secure and expand its fleet further. It wants to increase its assets and gain financial flexibility for long-term growth. It also wants to reduce its overall cost of ownership. The company is expected to close the transaction in the third quarter of this year. The deal is a cash deal with Norwegian working to gain long-term financing for the deal.
After the purchase is completed, the airline expects to record a recurring gain of around 260 million Norwegian kroner or around 21.8 million euros.
The airline said:
“This gain reflects the pricing the company has been able to achieve for the aircraft and the corresponding reduction of existing lease liabilities. “
In addition to this, it also expects to save around 25 million Norwegian kroner or around 2.6 million euros, in financing costs.
About Norwegian Air Shuttle ASA
Norwegian Air Shuttle ASA, which trades as Norwegian on the stock market, is a Norway-based low-cost airline. It is the fourth largest low-cost airline in Europe, following Wizz Air, easyJet, and Ryanair. It is Norway’s largest airline.
The Norwegian group, which owns the airline, also acquired Widerøe’s Flyveselskap last year. The regional carrier is Norway’s oldest airline.
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