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Norse Atlantic adapts US network amid IndiGo wet lease agreement

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Norse Atlantic adapts US network amid IndiGo wet lease agreement
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Norse Atlantic | Wikipedia

During the pandemic, while some airlines faced challenges, others found opportunities. Norse Atlantic, a long-haul low-cost carrier, emerged by acquiring Norwegian's Boeing 787s to attempt the long-haul low-cost business model. However, two years into operations, Norse Atlantic is still facing financial difficulties and has turned to a mix of scheduled and wet lease flights.

Data from Cirium’s Diio Mi airline planning tool indicates that in June, Norse Atlantic plans 69 weekly departures from Europe to the United States. This marks a decrease from June 2024 when there were 73 weekly departures including routes to Bangkok. Three routes have been removed: Oslo to Bangkok, Los Angeles, and Miami.

New routes added for the summer season include Rome to Los Angeles and Athens to Los Angeles. Out of its planned routes in June, only one route will not face competition: Athens to Los Angeles. Other routes such as Berlin to New York and Oslo to New York will compete with major airlines like Delta Air Lines and SAS.

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Norse Atlantic's winter plans involve reducing its flight schedule and focusing on flying between London-Gatwick and Cape Town as well as Bangkok. In December, it plans 41 weekly takeoffs from Europe compared to 69 in June.

The airline is also involved in a wet lease agreement with IndiGo for up to six Boeing 787-9 aircraft. The agreement secures additional revenue for Norse Atlantic while reducing market risk. Bjørn Tore Larsen, CEO of Norse Atlantic, stated that this deal strengthens their strategic position.

In March, Norse Atlantic redelivered three Boeing 787-8 aircraft despite having four years remaining on their leases. This move leaves them with a fleet of twelve Boeing 787-9 aircraft.

IndiGo's potential extension of wet leases could provide steady revenue for Norse Atlantic amidst global economic uncertainties influenced by U.S. trade policies under President Donald Trump. Larsen acknowledged ongoing losses but emphasized efforts towards sustainable profitability.

In 2024, Norse Atlantic reduced its net loss but faced challenges with increased capacity affecting revenue per passenger. Despite these challenges, Larsen expressed optimism for 2025 based on improved load factors and cost savings expected at $40 million annually.

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