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?
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?
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