Current Lease Talks with PIA and Biman Bangladesh

The discussions with PIA and Biman Bangladesh Airlines involve multiple lease structures . The options on the table include:

• Dry leases — where Norse provides only the aircraft and the lessee handles all crewing, maintenance, and insurance .
• ACMI (Aircraft, Crew, Maintenance, Insurance) leases — also called damp leases or wet leases, where Norse supplies the aircraft, pilots, and maintenance while the lessee provides cabin crew and sells tickets .

Norse has confirmed it is engaged with "several carriers" regarding ACMI opportunities following the redelivery of its IndiGo fleet . The exact terms of the PIA and Biman talks remain unclear, but the six 787s are the same aircraft that were previously leased to IndiGo .

Why IndiGo Ended Its Damp-Lease Agreement with Norse

Background: In early 2025, IndiGo — India's largest airline — launched its first-ever long-haul widebody operations by damp-leasing six Boeing 787-9s from Norse Atlantic . Under the damp-lease structure, IndiGo provided cabin crew and sold tickets while Norse supplied the aircraft and flight deck crew . The deal was meant as a bridge to IndiGo's own Airbus A350-900 deliveries, which are scheduled to begin in 2027 .

Termination: On July 31, 2026, IndiGo announced it would discontinue all widebody operations from October 25, 2026, and conclude the damp-lease agreement with Norse effective October 31, 2026 . IndiGo had already returned one of the six 787s after axing its Manchester route; the remaining five will be redelivered by November 1 .

Causes cited by IndiGo:

• A "challenging operating environment" driven by ongoing geopolitical tensions, specifically the war in the Middle East .
• Sharply elevated operating costs, particularly jet fuel prices .
• Airspace constraints affecting route viability .

Under the transition plan, IndiGo's Mumbai–Amsterdam route will shift to its own Airbus A321XLR aircraft, while London Heathrow services will be temporarily suspended until IndiGo's own A350s arrive . IndiGo reaffirmed its long-term long-haul ambitions but concluded the damp-lease bridge was uneconomical under current conditions .

Strategic Motivations for PIA and Biman Bangladesh

Pakistan International Airlines is seeking to rebuild its international route network after years of financial crisis and partial privatization efforts. Acquiring 787s via lease from Norse would let PIA add long-haul capacity without major capital expenditure, particularly for routes to Europe and the UK where PIA has been trying to restore services . PIA has separately been pressing Boeing to accelerate delivery of at least five of the 16 new 787 Dreamliners it plans to acquire, with the first batch expected in the first half of 2027 . Leasing from Norse could fill the gap sooner.

Biman Bangladesh Airlines has a long-haul fleet gap and has previously expressed interest in expanding its 787 operations. Leasing from Norse offers a quick way to add widebody lift without ordering new aircraft years in advance .

Both carriers need additional widebody aircraft but face capital constraints — making a lease, rather than a purchase, the practical path forward .

Norse Atlantic's Financial Pressures and Restructuring

Norse Atlantic's core business model — low-cost, long-haul transatlantic flights on an all-Boeing 787 fleet — has struggled to achieve sustainable profitability since its founding.

Financial performance:

• Revenue grew 66% year-on-year in Q1 2026 to $160.3 million, but EBITDAR was just $5.8 million (down 61% from Q1 2025's $15 million), and the underlying network EBITDAR remained negative at -$10 million .
• The airline achieved a positive full-year EBITDAR of $56.5 million in 2025 on $734 million revenue, but never reached net profitability .
• Cash reserves remain low, and cash flow from operations has been pressured by working capital movements and high seasonal activity .
• CEO Bjorn Tore Larsen admitted in late 2025 that full-year net profitability would elude the company, citing "tough competition" on core transatlantic routes, negative operational events, and cost inflation .

Key headwinds:

• The war in the Middle East drove a sharp rise in jet fuel prices, hitting Norse's cost structure hard .
• Soft transatlantic demand in key periods, with the airline cutting capacity to the US by approximately 44% .
• The loss of the IndiGo ACMI contract removes a significant revenue stream starting November 2026 — six 787s need new deployment .

Restructuring and strategic review:

• Norse has initiated a formal strategic review that could result in a sale, merger, or long-term partnership, advised by JPMorgan Chase .
• The company is effectively running a sale process alongside the lease negotiations with PIA and Biman, trying to place its surplus aircraft while also finding a corporate buyer or partner .
• In April 2026, Norse announced a fully underwritten rights issue to raise $110 million to strengthen financial flexibility, alongside a $70 million bridge loan . The airline also launched a cost-cutting initiative targeting around $50 million in savings .

The redelivery of IndiGo's five 787s gives Norse more asset flexibility for new ACMI opportunities, which is critical for near-term cash generation . Norse also plans to deploy part of the returning fleet within its own network for selected profitable routes during winter 2026/27, such as services from Europe to Orlando and New York .

Outlook

Norse Atlantic's survival depends on either securing new lease placements for its idle 787s — with the PIA and Biman Bangladesh talks as the most advanced option — or finding a buyer or merger partner . The low-cost long-haul model has proven extremely vulnerable to fuel spikes and geopolitical disruption, and the IndiGo pullback removed a key financial lifeline . The next few months will be decisive for the airline's future.

Current Lease Talks with PIA and Biman Bangladesh

The discussions with PIA and Biman Bangladesh Airlines involve multiple lease structures . The options on the table include:

• Dry leases — where Norse provides only the aircraft and the lessee handles all crewing, maintenance, and insurance .
• ACMI (Aircraft, Crew, Maintenance, Insurance) leases — also called damp leases or wet leases, where Norse supplies the aircraft, pilots, and maintenance while the lessee provides cabin crew and sells tickets .

Norse has confirmed it is engaged with "several carriers" regarding ACMI opportunities following the redelivery of its IndiGo fleet . The exact terms of the PIA and Biman talks remain unclear, but the six 787s are the same aircraft that were previously leased to IndiGo .

Why IndiGo Ended Its Damp-Lease Agreement with Norse

Background: In early 2025, IndiGo — India's largest airline — launched its first-ever long-haul widebody operations by damp-leasing six Boeing 787-9s from Norse Atlantic . Under the damp-lease structure, IndiGo provided cabin crew and sold tickets while Norse supplied the aircraft and flight deck crew . The deal was meant as a bridge to IndiGo's own Airbus A350-900 deliveries, which are scheduled to begin in 2027 .

Termination: On July 31, 2026, IndiGo announced it would discontinue all widebody operations from October 25, 2026, and conclude the damp-lease agreement with Norse effective October 31, 2026 . IndiGo had already returned one of the six 787s after axing its Manchester route; the remaining five will be redelivered by November 1 .

Causes cited by IndiGo:

• A "challenging operating environment" driven by ongoing geopolitical tensions, specifically the war in the Middle East .
• Sharply elevated operating costs, particularly jet fuel prices .
• Airspace constraints affecting route viability .

Under the transition plan, IndiGo's Mumbai–Amsterdam route will shift to its own Airbus A321XLR aircraft, while London Heathrow services will be temporarily suspended until IndiGo's own A350s arrive . IndiGo reaffirmed its long-term long-haul ambitions but concluded the damp-lease bridge was uneconomical under current conditions .

Strategic Motivations for PIA and Biman Bangladesh

Pakistan International Airlines is seeking to rebuild its international route network after years of financial crisis and partial privatization efforts. Acquiring 787s via lease from Norse would let PIA add long-haul capacity without major capital expenditure, particularly for routes to Europe and the UK where PIA has been trying to restore services . PIA has separately been pressing Boeing to accelerate delivery of at least five of the 16 new 787 Dreamliners it plans to acquire, with the first batch expected in the first half of 2027 . Leasing from Norse could fill the gap sooner.

Biman Bangladesh Airlines has a long-haul fleet gap and has previously expressed interest in expanding its 787 operations. Leasing from Norse offers a quick way to add widebody lift without ordering new aircraft years in advance .

Both carriers need additional widebody aircraft but face capital constraints — making a lease, rather than a purchase, the practical path forward .

Norse Atlantic's Financial Pressures and Restructuring

Norse Atlantic's core business model — low-cost, long-haul transatlantic flights on an all-Boeing 787 fleet — has struggled to achieve sustainable profitability since its founding.

Financial performance:

• Revenue grew 66% year-on-year in Q1 2026 to $160.3 million, but EBITDAR was just $5.8 million (down 61% from Q1 2025's $15 million), and the underlying network EBITDAR remained negative at -$10 million .
• The airline achieved a positive full-year EBITDAR of $56.5 million in 2025 on $734 million revenue, but never reached net profitability .
• Cash reserves remain low, and cash flow from operations has been pressured by working capital movements and high seasonal activity .
• CEO Bjorn Tore Larsen admitted in late 2025 that full-year net profitability would elude the company, citing "tough competition" on core transatlantic routes, negative operational events, and cost inflation .

Key headwinds:

• The war in the Middle East drove a sharp rise in jet fuel prices, hitting Norse's cost structure hard .
• Soft transatlantic demand in key periods, with the airline cutting capacity to the US by approximately 44% .
• The loss of the IndiGo ACMI contract removes a significant revenue stream starting November 2026 — six 787s need new deployment .

Restructuring and strategic review:

• Norse has initiated a formal strategic review that could result in a sale, merger, or long-term partnership, advised by JPMorgan Chase .
• The company is effectively running a sale process alongside the lease negotiations with PIA and Biman, trying to place its surplus aircraft while also finding a corporate buyer or partner .
• In April 2026, Norse announced a fully underwritten rights issue to raise $110 million to strengthen financial flexibility, alongside a $70 million bridge loan . The airline also launched a cost-cutting initiative targeting around $50 million in savings .

The redelivery of IndiGo's five 787s gives Norse more asset flexibility for new ACMI opportunities, which is critical for near-term cash generation . Norse also plans to deploy part of the returning fleet within its own network for selected profitable routes during winter 2026/27, such as services from Europe to Orlando and New York .

Outlook

Norse Atlantic's survival depends on either securing new lease placements for its idle 787s — with the PIA and Biman Bangladesh talks as the most advanced option — or finding a buyer or merger partner . The low-cost long-haul model has proven extremely vulnerable to fuel spikes and geopolitical disruption, and the IndiGo pullback removed a key financial lifeline . The next few months will be decisive for the airline's future.