Norwegian has entered an agreement to purchase 10 737-800 aircraft that are currently a part of its leased fleet. The transaction is expected to close in the first quarter of this year.
The company said the transaction is “at favourable terms” and will be key to it securing its future fleet, as well as providing “financial flexibility” that is suitable to its long-term strategy.
“The aircraft being acquired are an integral part of Norwegian's existing fleet and will through this deal continue to operate across our attractive and growing route network,” said Norwegian CEO Geir Karlsen. “This move is expected to deliver both short and long-term cost savings, as well as provide additional flexibility for future fleet planning.”
Upon completion, the company expects a gain of around 507 million Norwegian krone ($45.3 million). In addition, the company expects a recurring cost savings net of financing costs averaging at 200 million krone ($17.9 million) per year.
The transaction will initially be funded through cash and is currently in the process of securing long term financing after completion through a combination of financing arrangements.