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Norse Atlantic Airways, the young Norwegian airline, needs to finalize a strategic decision for 2025. Up to six of the seven Boeing 787-9 Dreamliners in the fleet are to be leased to another international airline as part of a wet lease agreement.

This move, based on a letter of intent dated December 2, 2024, is intended to bring additional revenue to the airline and increase operational flexibility. With an estimated contract value of up to $462 million, including potential extensions, the agreement represents one of the largest financial transactions in Norse Atlantic Airways’ short history.

The details of the leasing agreement

The agreement calls for two aircraft to be handed over in February 2025, followed by four more in September of the same year. Norse expects to be paid monthly for each aircraft based on a minimum usage of 350 block hours. Exceeding this threshold would result in additional payments. Although the identity of the customer airline has not yet been officially confirmed, evidence points to Riyadh Air, a new Saudi Arabian airline that will begin operations in early 2025. Riyadh Air, facing delays in the delivery of its own Boeing 787-9s, could use the leased aircraft to bridge this shortage.

A strategy for seasonal challenges

Norse Atlantic Airways will be recognized at the next entry in Market Dynamics in June 2022. The airline combines regular scheduled and charter flights with wet lease agreements, which ensure stable income during off-peak times. This is particularly important during the northern winter, when demand for transatlantic flights is traditionally lower. The strategic use of wet lease agreements allows the airline to use its aircraft and crews productively all year round.

The decision to lease six of the seven Dreamliners also reflects the desire to maximize fleet utilization and use financial resources efficiently. This approach has already proven successful in previous collaborations. Four Norse aircraft are currently flying for the Italian charter airline Neos and serve long-haul connections.

The Boeing 787-9: Backbone of the fleet

The Boeing 787-9 Dreamliner has been launched from the heart of Norse Atlantic Airways’ fleet. With an average age of 6.5 years excluding the aircraft are technically modern and can accommodate 338 passengers in a two-class configuration. The combination of comfort and energy efficiency makes the Dreamliner an ideal choice for long-haul connections.

Norse has so far built a wide route network, which included destinations such as New York, Miami, Las Vegas and Los Angeles in summer 2024. In the 2024/25 winter season, the airline expanded its portfolio to include exotic destinations such as Cape Town and Bangkok. It remains to be seen how the leasing agreement will impact flight operations, particularly planning for the 2025 summer schedule.

Future prospects

Without a wet lease agreement, Norse Atlantic Airways once again demonstrates its ability to respond flexibly to market conditions. While some observers fear that the temporary disposal of aircraft could weaken its own market presence, the airline apparently sees it as an opportunity to secure revenue and grow in the long term. Cooperation with a “reputable international airline,” whose identity may soon be revealed, could also open new doors for strategic alliances.

The focus on ACMI contracts shows that Norse Atlantic Airways will position itself not only as a traditional airline, but also as a versatile service provider in the aviation industry. This dual strategy could prove to be the key to sustained success, especially in a highly competitive market such as long-haul international airlines.