Five leasing companies will be affected by Norwegian’s decision to discontinue long-haul operations under a plan to focus on a core business of operating a European short-haul network with narrowbody aircraft.
Airfinance Journal's Fleet Tracker shows Norwegian and its subsidiaries have a fleet of 33 Boeing 787s, including eight 787-8s and 25 787-9s.
Fleet Tracker shows that lessors Aercap, BOC Aviation and MG Aviation are the most exposed, owning almost 50% of the airline's widebody fleet.
Aercap has three 787-8s and five 787-9s still leased to Norwegian, while BOC Aviation has five 787-9 units. MG Aviation has four 787-9s on lease to the carrier.
Avolon has three 787-9s on lease, while DP Aircraft has two 787-8 units. Irish subsidiary Arctic Aviation Assets has three 787-8s and eight 787-9s.
As part of the plan, Norwegian aims to raise between NOK4 billion ($470 million) and NOK5 billion of new capital through a combination of a rights issue to current shareholders, a private placement and a hybrid instrument.
The company aims to reduce its total debt to around NOK20 billion.
Should the plan be accepted by the Irish Examinership and Reconstruction Negotiation processes, Norwegian is expected to initially hold up to 50 Boeing 737 aircraft (owned and leased) primarily operating in Norway and the Nordics or from Norway/Nordics to continental Europe.
Fleet Tracker shows that Norwegian and its subsidiaries operate 105 aircraft, of which 103 are 737-800s and two are Max 8s.
Post-restructuring, current shareholders will hold approximately 5% of the shares in the company and will be offered to participate in a rights offering of up to NOK400 million.
Norwegian´s impaired creditors are expected to hold approximately 25% of the shares in the company post reconstruction, as compensation for their participation in the debt reduction, while new investors (in both the equity issue and the new hybrid instrument) will hold, directly or indirectly, approximately 70% of the shares in the company.