All-Boeing 787 airline Norse Atlantic Airways is pursuing a sale, merger, or partnership, as the airline has otherwise run out of viable options, after India’s IndiGo pulled the plug on its aircraft leasing agreement.
To Norse Atlantic’s credit, the airline sure is putting a positive spin on this. Is there any chance this will work out well for the airline, or is this overoptimism?
In this post:
Norse Atlantic gets back 787s, has nowhere to fly them
The airline industry can be a funny business, and there’s no clearer example of that than Norse Atlantic Airways. The airline launched in 2022, with the goal of operating long haul, low cost flights, particularly across the Atlantic.
That wasn’t exactly a unique business model, because this was exactly what Norwegian did, before it discontinued long haul flights in 2021. Not only was the idea sort of copied, but Norse Atlantic had some executives from Norwegian, and even picked up the planes that Norwegian previously flew.
But as is all too common in the airline industry, clearly they thought it would be different this time around… it wasn’t. So in 2024 we saw the airline update its business model, making the focus less about operating regularly scheduled commercial flights, and more about leasing out aircraft, all while reducing its fleet.
The company got a lifeline when IndiGo decided to lease some Norse Atlantic 787s to dabble in long haul flying, ahead of the airline taking delivery of its own Airbus A350s.
However, between all the airspace closures, high oil costs, and generally declining performance at IndiGo as the airline increasingly moves away from its core strengths, the airline has now decided to scrap that experiment. These planes will be returning to Norse Atlantic as of November 1, 2026.
This means Norse Atlantic will be getting back five Dreamliners (beyond the one that has already been returned), just in time for the winter season… which isn’t exactly the ideal time of year for a long haul, low cost airline to get more planes! So what’s the plan?
Norse Atlantic now open to basically any opportunity
What does Norse Atlantic plan to do with these planes that are being returned? Well, let me just quote the airline. Here’s what it had to say about fleet deployment:
Norse is already engaged in discussions with several airlines regarding ACMI opportunities for up to five aircraft and expects to provide further updates in due course. Moreover, the Company intends to deploy part of the returning fleet within its own network for increased production on selected profitable routes during the upcoming winter season, such as flights from Europe to Orlando and New York.
And here’s the more interesting point, about a strategic update:
The transition provides Norse Atlantic with greater fleet flexibility as the Company advances its strategic review. Given the level of interest received to date as part of the strategic review, the Board has decided to move forward with a formal process, which may result in a sale, merger or partnership. Further information will be provided as and when appropriate.
I also can’t help but point out this quote from Norse Atlantic CEO Eivind Roald:
“The return of these six aircraft opens up strategic opportunities that were not available to us before. We are seeing strong demand for modern, fuel-efficient long-haul aircraft, and we also see attractive opportunities to deploy additional capacity within our own network. Our priority is to use this increased flexibility to improve profitability and create long-term value for our shareholders.”
Correct, when you run out of business opportunities, that does indeed open up strategic opportunities that were not available before!
Now, I’m struggling to see where there’s much upside here. Norse Atlantic leases its fleet of planes, so it’s not like an “acquisition” of a company that barely has scheduled flights and that is struggling to lease out aircraft adds much value. If Norse Atlantic’s own scheduled operations were anywhere close to profitable on a year-round basis, the airline wouldn’t be in this situation.
If someone wanted the planes, well… they could just do what Norse Atlantic did to Norwegian. Wait until the company goes out of business and the planes are returned to the leasing company, and then pick them up there.
I’m not trying to be so flippant, I feel bad for the people who would be losing their jobs here. But we also have to be realistic that basically replicating a failed business model with the same planes and similar routes isn’t a recipe for success. We’ve seen this over and over… just look at what we saw in Iceland with WOW Air and then PLAY Airlines.
Bottom line
Norse Atlantic is once again finding itself in a tough situation — well, even tougher situation, since I don’t think it was ever in a good situation. For the past 18 months or so, the airline has been leasing out a majority of its active fleet to IndiGo, but those planes will be returned as of late 2026.
While the airline claims it will try to redeploy the planes on profitable routes, that’s easier said than done. It’s also reportedly in talks to lease the planes to other airlines. The company is pursuing “strategic opportunities,” which could include a sale, merger, or partnership, but the upside seems pretty limited when your planes are leased in the first place.
How do you see this situation playing out for Norse Atlantic?
I feel we've seen this movie before.
I hate to see them go. I used them last year JFK-FCO and they were great! Oil prices did them in!
Take a look at JFK to Aruba. Very profitable especially during holidays.
I'm pretty sure that investors already gave up hope here. The share plummeted and lost 90% of its value this year so far, from about 4kr to 40øre (that's 40 cent to 4 cent for those who don't know how to convert currency). They only thing they did so far was spread a message of positive expectations every time they went with a new emission and a new strategy and somehow people fell for it...
I'm pretty sure that investors already gave up hope here. The share plummeted and lost 90% of its value this year so far, from about 4kr to 40øre (that's 40 cent to 4 cent for those who don't know how to convert currency). They only thing they did so far was spread a message of positive expectations every time they went with a new emission and a new strategy and somehow people fell for it every time. Fool me once, shame on you. Fool me twice...
They started with some sweet leasing deals and tried to fill a few gaps in underserved long haul markets like Oslo and Berlin. SAS has been categorically avoiding long haul operations at OSL for decades while Berlin simply offers a shit show of its own. They then changed to a leasing company and now they're basically willing to go to a hotel room with anyone for $50 an hour.
Maybe it's time to place bets: I don't think they'll make it to Christmas.
The model is not survivable, yet I desperately want them to survive. The world is a better place with Norwegian/Norse on London-New York, and New York - other EU majors.
I flew them from Gatwick to Orlando a few years ago in Economy. I only needed a one way ticket and Norse sold them at one way prices unlike everyone else that charged almost as much for a one way as they charged for a round trip. Went with low expectations but we departed on time, the flight attendants were friendly and the Economy hot meal was decent. Would hate to see them go.
I wonder how it’s working for LEVEL. I was a fan of their premium economy product. It was slightly superior to Norweigan’s
Someone must be able to get this model to work.
Norse Atlantic has a couple of major problems:
1 - Lack of customer service - someone else mentioned this, for an airline to survive they need good customer service.
2 - For long haul airlines they need to have feeder flights with at least an interline baggage agreement. I live in Utah, if I fly to Orlando on another airline I have to collect my bags, check in with Norse and go through security again. Alaska and Icelandair - one ticket from Utah to Iceland....
Could these work for AA on West Coast to Hawaii or domestic/short haul trunk routes? That could free up planes with flat beds for long-haul expansion.
"To Norse Atlantic’s credit, the airline sure is putting a positive spin on this."
Since when did Ben start writing like this? Calling Alaska's response of handling a lesson in customer service? What will he do next, start using the term "enhancement" for cuts in loyalty programs?
About the same time as Ben started taking Saudi money to talk up Saudia and Riyadh Air.
They f--k over the customer canceling the London Los Angeles route 2026 Cherry picking routes now they want the customers back I'm glad they got screwed over by the Indians
JFK-FCO round trip non stop premium for $800 sounded good for a Thanksgiving Day redeye. Months later, they canceled that flight which blew up my plans entirely. I canceled that leg, and was fortunate to get BA J at a reasonable price. Kept the return to see how it was, I mean, what's another night in Rome if things go awry? Not bad for $400, but I would never take a chance on them again.
I'd personally be sad to see them go. Living in Orlando, I often find tickets with them to LGW for very cheap prices. It's an amazing way to see friends for a long weekend or a quick getaway (and with a generous carry-on size).
One way tickets as low as $139, round trip for less than $400 (used to be $99 and $279 respectively prior to the Iran war). Routinely saw premium for only $200 more one-way.
If one is losing a quarter be sure to get an alternative business model that will lose a dollar instead.
@ Paul Dolt
It's "its" when referring to Norse employee. There is a case for "their" as a better choice.
The problem with wetleasing is that there probably aren’t a lot of airlines looking for 787s in this config - ie lack of proper lie flat business class.
"Norse Atlantic"? Don't you mean Norwegian Air with a fresh coat of paint, the same 787 lease agreements, the same executives, the same routes, and, it seems, the same outcome?
The original Norwegian Air Shuttle operation seems to be doing alright though!
Ah, yes, for those who seek nonstop OSL-BGO. Thank goodness...
Having flown 4 round trips on Indigo on the LHR - BOM sector in what Indigo calls Stretch class, I have to say that the hard product on these planes is better than the PE offered by BA, VS, etc on the same route - 7 across, excellent legroom and good recline. Indigo offered fast track security, lounge access and priced it cheap - with the exception of a trip during the Christmas period last...
Having flown 4 round trips on Indigo on the LHR - BOM sector in what Indigo calls Stretch class, I have to say that the hard product on these planes is better than the PE offered by BA, VS, etc on the same route - 7 across, excellent legroom and good recline. Indigo offered fast track security, lounge access and priced it cheap - with the exception of a trip during the Christmas period last year, I didn't pay more than £8-900 round trip. And maybe that was the problem for Indigo, given that BA and VS were usually at least 30-40% more expensive.
I agree Nikojas however that strategy would only be a sticking plaster as tourist "high season" is only four months, Norse already do high season flights MAN/BKK, they would have to fly 95% capacity and increase their fares, unfortunately Norse does not hedge fuel prices and in the current oil price climate that"s a major player. Sadly I feel without an interested buyer the final part of 2026 will be difficult for Norse and all it"s employees.
With some people keen to avoid transit in the Middle East you'd think they might be able to make some money flying from Europe to Thailand and Vietnam during the winter... Whether it's enough money to stay afloat is another question.
I'd agree Vietnam would be a no brainer for them.
TUI used to fly LGW-PQC direct and we're making a fortune on the route pre COVID, if Norse were able to price it similarly to there HKT/BKK flights they would be full daily