Arctic Aviation Assets (AAA), the leasing subsidiary of Scandinavian low-cost carrier (LCC) Norwegian, has exercised options on two Boeing 737 MAX aircraft, converting them to firm orders. AAA also signed a letter of intent (LOI) June 14 for a sale-and-leaseback transaction of 11 Boeing 737-800s currently operated by Norwegian.
The two new 737 MAX aircraft will be delivered during 2018. AAA now has 110 737 MAX models on firm order, plus 90 remaining purchase options.
The LOI for sale-and-leaseback of the 11 aircraft is expected to reduce the Norwegian Group’s financial net debt by NOK1.4 billion ($165 million) based on a NOK/USD currency exchange rate of 8.5.
The latest actions follow the May 4 announcement by Norwegian of a sale-and-leaseback deal on eight new Boeing 737-800s to be conducted in 2Q 2107. Following the sale of those eight new deliveries, together with the 11 aircraft already in the fleet noted above, the Norwegian Group estimates a positive net cash flow impact of approximately NOK2.3 billion.
“By selling some of our older 737-800 aircraft and ordering two additional 737 MAX aircraft, we are taking another step toward replacing our current fleet with even more fuel-efficient and more environmentally friendly aircraft,” Norwegian CEO Bjørn Kjos said. “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.”