Norse Atlantic weighs alliance options with larger airlines
Norse Atlantic has been approached by two larger airlines interested in buying a minority stake in the young carrier, CEO Bjorn Tore Larsen said, as he weighs a potential partnership that would bolster the company’s low-cost, long-haul business plan. An alliance would help the transatlantic discounter save on costs and increase revenue, while providing access to the partner’s network, Larsen said in an interview Wednesday in London. He declined to identify the suitors but said both were cash-rich: one a major airline, the other medium-sized. The CEO spoke after Norse, which started transatlantic services in June 2022, completed a $55m fundraising this week, giving it a cash cushion to address accelerated payments to a key supplier during the slow winter season. Norse isn’t rushing to find a partner, Larsen said, declining to provide further details. The company said last week it hired advisers after being approached by potential airline investors. A partnership with Norse “would be of interest to some of the big players, not necessarily only in Europe, but elsewhere as well,” the CEO said. Stronger airlines are leading a wave of post-Covid 19 consolidation after many carriers were weakened by the travel downturn. In Europe, Deutsche Lufthansa AG has agreed to invest in Italy’s state-owned ITA Airways, while Air France-KLM plans to buy an initial stake in SAS. Portuguese flag-carrier TAP is also up for sale, while IAG is seeking approvals to take over Spain’s Air Europa. Norse, formed in 2021, began service in June 2022 with a flight from Oslo to New York’s John F. Kennedy International. The company uses Boeing 787 Dreamliners once operated by Norwegian Air Shuttle, having secured long-term leases substantially below current market prices, Larsen said. “There’s no way we could get that cost today,” he said. Five of its 15 aircraft are sublet to Air Europa. Those will be returned to Norse gradually under conditions currently being negotiated, Larsen said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-09/unaligned/norse-atlantic-weighs-alliance-options-with-larger-airlines
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Norse Atlantic weighs alliance options with larger airlines
Norse Atlantic has been approached by two larger airlines interested in buying a minority stake in the young carrier, CEO Bjorn Tore Larsen said, as he weighs a potential partnership that would bolster the company’s low-cost, long-haul business plan. An alliance would help the transatlantic discounter save on costs and increase revenue, while providing access to the partner’s network, Larsen said in an interview Wednesday in London. He declined to identify the suitors but said both were cash-rich: one a major airline, the other medium-sized. The CEO spoke after Norse, which started transatlantic services in June 2022, completed a $55m fundraising this week, giving it a cash cushion to address accelerated payments to a key supplier during the slow winter season. Norse isn’t rushing to find a partner, Larsen said, declining to provide further details. The company said last week it hired advisers after being approached by potential airline investors. A partnership with Norse “would be of interest to some of the big players, not necessarily only in Europe, but elsewhere as well,” the CEO said. Stronger airlines are leading a wave of post-Covid 19 consolidation after many carriers were weakened by the travel downturn. In Europe, Deutsche Lufthansa AG has agreed to invest in Italy’s state-owned ITA Airways, while Air France-KLM plans to buy an initial stake in SAS. Portuguese flag-carrier TAP is also up for sale, while IAG is seeking approvals to take over Spain’s Air Europa. Norse, formed in 2021, began service in June 2022 with a flight from Oslo to New York’s John F. Kennedy International. The company uses Boeing 787 Dreamliners once operated by Norwegian Air Shuttle, having secured long-term leases substantially below current market prices, Larsen said. “There’s no way we could get that cost today,” he said. Five of its 15 aircraft are sublet to Air Europa. Those will be returned to Norse gradually under conditions currently being negotiated, Larsen said. <br/>
