Norwegian low-cost carrier Norse Atlantic is looking for a buyer or partner as it continues efforts to restructure and cut costs.
In a recent statement, the airline acknowledged for the first time that it is exploring a potential merger or sale.
“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,” the carrier said. “Further information will be provided as and when appropriate.”
The announcement came as Norse Atlantic ended an aircraft, crew, maintenance, and insurance (ACMI) agreement with IndiGo, which provided the Indian airline with six Norse Atlantic aircraft. Some of the returning aircraft will be reintegrated into Norse Atlantic’s operations, officials said, while others could be loaned out through a new ACMI deal with a different partner carrier.
“We are grateful for the strong cooperation we have had with IndiGo over the past eighteen months,” Norse Atlantic CEO Eivind Roald said in a news release. “However, there is no doubt that the elevated fuel prices, airspace disruptions, and longer flight routes resulting from the Middle East conflict have affected the commercial viability of the arrangement for both parties. We have therefore jointly concluded that alternative deployment of the aircraft will be more commercially beneficial to both parties.”
Norse Atlantic launched a sweeping restructuring plan earlier this year as higher fuel prices ate into its earnings. The airline laid off staff, furloughed some crew members, and instituted temporary pay cuts for some non-flying crew. It is also in the process of moving its headquarters from Arendal, Norway, to Oslo.
In May, Bloomberg reported that the airline brought on JPMorgan Chase to lead a potential sale process.
Norse Atlantic operates only long-haul flights, with destinations in Europe, Southeast Asia, South Africa, and North America.
