Norwegian and ceo Bjørn Kjos sells the first five aircraft that HK Express in Hong Kong were supposed to have aquired, but has not given up the deal with the crisis-driven Hong Kong company.
While the Norwegian airline cites billions and announces new deficits, it has found a kind of solution to one of its biggest headaches: the agreement with the HK Express low-cost carrier in Hong Kong.
The authorities deny the small airline on the other side of the globe to take into account the aircraft that Norwegian has agreed to lease out from its Irish subsidiary Arctic Aviation Asset Ltd. HK Express is Norwegains only air lease customer, and there are new airplanes from Airbus to be leased out.
Now, Norwegian is about to sell the first five aircraft it has received, but HK Express has not been allowed to use. The aircraft are of the Airbus A320neo type.
"We have received five aircraft, which we will start to sell," says Norway's acting finance director Tore Østby at a conference call Wednesday.
According to him, the sales process is in the final phase and he expects to be able to tell more in the next few weeks.
- We have received offers from several parties and are in the final phase. We expect to complete this during the first quarter, "says Østby, who would not say if all 5 is being sold to the same buyer.
Meanwhile, delayed handover to the end customer HK Express makes the revenues for Norwegian fail.
"It is clear that delays in delivery will adversely affect us. Then your income will arrive later than planned. But fortunately, also the costs, "said Kjos to DN in February.
In total, the Norwegian subsidiary Arctic Aviation Asset Ltd in Ireland has an agreement to lease 12 A230neo aircraft to Hong Kong-based airline HK Express. Norwegian chief executive Bjørn Kjos and Østby stand by the agreement with HK Express, despite all the problems.
"The five we have on hand, we are starting to sell, but HK Express will take the next seven aircraft, which will be delivered next year," says Østby.
Norwegian expects a profit of between 15 and 20 million dollars for the five aircraft.
The five will probably not be the last aircraft Norwegian sells in the next few years. According to Kjos, there is strong interest in the market.
"It's a big, no, huge interest," says Kjos to DN, before adding:
- We have more requests we will look into.
After a sale of the five aircraft, Norwegian will have 65 Airbus A320neo aircraft and 30 A321L aircraft in order.
"We can sell a portion of the portfolio, or join a leasing company where we can rent to others in the industry. We actually have several opportunities, "said Bjørn Kjos, on DN's question at a conference call Wednesday morning.https://www.dn.no/nyheter/2018/03/21/12 ... -interesse