Norse Atlantic subleases another Dreamliner to bring in profit

Norse Atlantic Airways has signed a deal to sublease another one of its Boeing 787-8 Dreamliner aircraft, bringing in more cash for the new long-haul carrier.

The Norwegian-based airline said the sublease is for a period of 18 months and the aircraft will be delivered to the sub-lessee before the end of the year.

Low-cost long-haul Norse Atlantic has ordered 15 Dreamliners but said it only intends to operate 10 of them during summer 2023. Four aircraft are already being leased to Air Europa.

“This additional sublease agreement provides a further opportunity to increase total cash profit during the lease period,” said Bjorn Tore Larsen, CEO of Norse Atlantic, in a statement on October 18, 2022.

The airline has taken delivery of 13 of its planned 15 aircraft so far, with the remaining two expected before the end of 2022. Norse Atlantic was founded in March 2021 and its first flight took off from Oslo to New York on June 14, 2022.

It highlighted that it agreed long-term leases for its Dreamliners during 2021, when rates were at historic lows due to the COVID-19 pandemic. For the first 12 months after delivery of each respective aircraft, Norse Atlantic only pays for the aircraft on a power by the hour basis.

The news comes a day after Norse Atlantic announced its UK unit had received permission to operate flights between London Gatwick (LGW) and destinations in the United States. The approval means it will not have to operate the short connecting flight between Oslo and London using its Norwegian business, as it does at present while it establishes itself on the route.