Norwegian Air Shuttle announced (30-Aug-2013) plans to establish a fully owned asset management company which will be incorporated under the laws of Ireland and will have USD as its functional currency. The first aircraft to be placed under the control of the asset management company is the Boeing 737-800 due for delivery in Sep-2013. The asset management company will operate as lessor of the aircraft. The incorporation of the new subsidiary will also limit currency exposure to the balance sheet. The currency exposure is primarily driven by a mismatch between USD denominated loans and aircraft balance sheet values denominated in NOK, managed today by extensive hedge arrangements. [more - original PR]
Norwegian Air Shuttle to establish fully owned asset management company in Ireland
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Norwegian Air: 10 new North Atlantic routes enabled by new narrowbody aircraft and price stimulation
Norwegian's long anticipated new trans Atlantic routes, to be launched in summer 2017, will add five airports in the UK and Ireland and three in the US to its existing long haul network. Norwegian already operates to eight US primary airports from London Gatwick. By using new narrowbody technology Norwegian is opening trans Atlantic travel to smaller cities that could not support widebody service.
The new trans Atlantic routes, the first to be operated by its Irish subsidiary NAI after receiving US rights late in 2016, will deploy new Boeing 737-8 MAX aircraft with a longer range than existing narrowbodies, and Norwegian is the European launch customer of the type.
In total there will be 10 new routes, comprising 38 weekly flights from Edinburgh, Belfast International, Cork, Shannon and Dublin serving three secondary airports on the US east coast. These are Stewart International (SWF), Providence (PVD) and Hartford Bradley International (BDL). These US airports are small and relatively unknown in Europe, and Norwegian will have to rely on price stimulation more than it has done on existing long haul routes. Nevertheless, Norwegian is once more leading the market with this innovation.