The airline is continuing its aircraft selling spree, in an effort to reduce its sizeable debts.
Norwegian has sold all of the company’s five Airbus A320 aircraft, which are currently on lease to Hong Kong-based low-cost carrier HK Express. This means that over the last 10 weeks, Norwegian has sold 13 aircraft, Check-in.dk writes.
Facing a winter of high fuel prices, sizeable debt and weakening capital resources, Norwegian has resorted to selling off its most prized assets.
It now says its subsidiary Arctic Aviation Assets has sold five Airbus A320-200neo planes, which will be delivered to their new owner in the fourth quarter of 2018.
The transaction is worth $62 million, which Norwegian says will be used to repay debts and increase liquidity reserves.
Planes for sale
Norwegian has sold a total of 13 aircraft within the last 10 weeks, most recently on October 24 when Arctic Aviation Assets sold two Boeing 737-800s in use by Norwegian.
These aircraft will be delivered to their new owner in the third quarter of 2019, after which Norwegian can add a much-needed $23 million in revenue to its accounts.
In an earlier deal, announced on August 25, the company sold six Boeing 737-800s via Arctic Aviation Assets to be delivered by August 2019.
“The price is somewhat higher than the debt for the planes,” CFO Geir Karlsen told Reuters when the transaction became known.
By the end of the year, Norwegian expects to own 74 aircraft, namely 12 Boeing 787 Dreamliners, 52 Boeing 737-800 and 10 Boeing 737 MAX 8. In addition, it has leased 84 aircraft, of which 20 are Boeing 787 Dreamliners, 62 Boeing 737-800 and two Boeing 737 MAX 8.
Norwegian will stick to its strategy of selling up to 140 aircraft, the airline wrote in an investor presentation on September 4, confirming plans for large-scale asset disposals.