Tuesday, 5 February 2019

Norwegian sells two A320neo aircraft

Norwegian Air Shuttle subsidiary Arctic Aviation Assets has signed a sales agreement for two of the groups new Airbus A320neo aircraft. 

These two jets are currently leased out to other airlines, so the sale won't affect Norwegian's operations or routes and the firm tells us the deal will be completed before the end of February.

Once the transaction is completed it is expected to raise the company's liquidity by $26 million after repayment of debts and have a positive equity effect. Sale proceeds will be used to repay debt and to increase the Company´s liquidity.

The sale of new aircraft is in line with Norwegian's revised company strategy of capitalising on the existing route network it has built up in recent years whilst also cutting costs. The group is committed to working on profitability rather than growth and the sale of new aircraft is in line with that direction of progression.  

In an announcement last month, Norwegian confirmed it was looking raise  NOK 3 billion with a new shares issue at the same time it highlighted the sale of new and forthcoming aircraft was a measure to reduce capital expenditures, in addition to the postponement of some aircraft deliveries.     -- -- -- .

(Photo  Norwegian)