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Someone83
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Norwegian sells 5 737-800 to CALC

Fri Oct 18, 2019 2:58 pm

Norwegian has sold 5 737-800s to a company owned by Chinese CALC. Aircraft to be delivered in Q4 2019 and Q1 2010. After repayment of debt, it will strengthen Norwegian's liquidity by $50 millions. It will also increase the equity, without saying how much. But at least it mean the market value of the aircraft was higher than the book value

https://newsweb.oslobors.no/message/487328

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA ("the Company"), has signed an agreement for sale of five Boeing 737-800 aircraft with Aircraft Recycling International Limited (“ARI”) a commonly held entity of China Aircraft Leasing Group Holdings Limited (“CALC”). The aircraft are currently operated by the Company, and the deliveries will take place late in Q4 2019 and Q1 2020. Sale proceeds will be used to repay debt and to increase the Company´s liquidity. The transaction is expected to increase the Company's liquidity by approximately USD 50 million after repayment of debt and have a positive equity effect. The sale is in line with the Company’s continued strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability.
 
WingsOfLove
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 2:56 am

Someone83 wrote:
the market value of the aircraft was higher than the book value


The 7 month MAX production stop and no end in sight is increasing demand / cost for available air frames.

Norwegian Air also relinquished 5 A320neos that haven't been built yet.
https://www.cnbc.com/2019/10/09/reuters ... urces.html
 
CX747
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 3:06 am

WingsOfLove wrote:
Someone83 wrote:
the market value of the aircraft was higher than the book value


The 7 month MAX production stop and no end in sight is increasing demand / cost for available air frames.

Norwegian Air also relinquished 5 A320neos that haven't been built yet.
https://www.cnbc.com/2019/10/09/reuters ... urces.html


The delivery hiatus of the 737 Max has created some necessary moves. In addition, production of the Max never stopped and they are rolling down the line today. As for the end, it is in sight. Looking at timetables and carriers resources, first revenue flights in early 2020.
"History does not long entrust the care of freedom to the weak or timid." D. Eisenhower
 
WingsOfLove
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 3:22 am

CX747 wrote:
production of the Max never stopped and they are rolling down the line today


Thank you :smile:
 
Blueknows
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 10:14 am

With the new DY/B6 partnership looks like DY is cleaning up operation. They don’t need as many aircraft in the short term. They can use the codeshare to gain connections on B6 network, with B6 planes. I’m excited to see this play out Q1 2020
 
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zkojq
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 10:27 am

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA ("the Company"), has signed an agreement for sale of five Boeing 737-800 aircraft with Aircraft Recycling International Limited (“ARI”) a commonly held entity of China Aircraft Leasing Group Holdings Limited (“CALC”).


So presumably they're going to be scrapped? Does anyone know which serial numbers these are?
First to fly the 787-9
 
BrianDromey
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 10:50 am

Blueknows wrote:
With the new DY/B6 partnership looks like DY is cleaning up operation. They don’t need as many aircraft in the short term. They can use the codeshare to gain connections on B6 network, with B6 planes. I’m excited to see this play out Q1 2020


What are you talking about?
These 737-800s would have been operated in Europe. The Transatlantic operations are are 787 now. The 73H/78M operations are all cancelled.

Norwegian and JetBlue is a codeshare. It’s not going to transform the fortunes of either carrier.
 
Someone83
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 11:48 am

BrianDromey wrote:
Blueknows wrote:
With the new DY/B6 partnership looks like DY is cleaning up operation. They don’t need as many aircraft in the short term. They can use the codeshare to gain connections on B6 network, with B6 planes. I’m excited to see this play out Q1 2020


What are you talking about?
These 737-800s would have been operated in Europe. The Transatlantic operations are are 787 now. The 73H/78M operations are all cancelled.

Norwegian and JetBlue is a codeshare. It’s not going to transform the fortunes of either carrier.


It is not even a codeshare, just interline

But as you point out, this has nothing to do with B6
 
Someone83
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 11:50 am

zkojq wrote:
Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA ("the Company"), has signed an agreement for sale of five Boeing 737-800 aircraft with Aircraft Recycling International Limited (“ARI”) a commonly held entity of China Aircraft Leasing Group Holdings Limited (“CALC”).


So presumably they're going to be scrapped? Does anyone know which serial numbers these are?


Don’t Be confused with the name. I doubt they will be scrapped

The whole MAX issue has increased the demand for used NGs. So Norwegian has most likely got a very good price
 
Blueknows
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 1:03 pm

it has everything to do with B6. This Interline deal has been in the works for awhile. They pulled DY flights from PVD/SWF and closed DUB/ORK. They are going to move more planes to Latin America,and around EUROPE.
Min Kim, Norwegian’s senior communications manger for North America, told Travel + Leisure. “And JetBlue is a low-cost airline, with the best domestic fares. Combined, customers across the U.S. will have greater, seamless access to transatlantic flights at unbeatable ticket prices.
They are right now place holders for B6 2021 Europe operation. B6 will use DY slots and DY will move those planes from trans Atlantic to LATIN America/longer profitable Europe/Asia/Africa routes in the future.
 
sxf24
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 1:06 pm

This deal has been in work since before the MAX grounding. Don’t read too much into it.
 
Blueknows
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 1:06 pm

Also with the infusion of cash from plane sales...helps them boost liquidity. I don’t see DY going out if business anytime soon. This AC sale is smart move for DY
 
BrianDromey
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 10:11 pm

Blueknows wrote:
it has everything to do with B6. This Interline deal has been in the works for awhile. They pulled DY flights from PVD/SWF and closed DUB/ORK. They are going to move more planes to Latin America,and around EUROPE.
Min Kim, Norwegian’s senior communications manger for North America, told Travel + Leisure. “And JetBlue is a low-cost airline, with the best domestic fares. Combined, customers across the U.S. will have greater, seamless access to transatlantic flights at unbeatable ticket prices.
They are right now place holders for B6 2021 Europe operation. B6 will use DY slots and DY will move those planes from trans Atlantic to LATIN America/longer profitable Europe/Asia/Africa routes in the future.


If you say so. I doubt B6 even knows where Cork is (I’m from Cork, btw). Are you actually suggesting that Norwegian cut ORK-PVD 6 months ago because of an interline agreement yet to be signed with JetBlue. This interline allowed them to sell 5 737s that were never used over the Atlantic? I’m sorry this makes no sense.

If you truly believe that an interline agreement acts as a placeholder for B6, I truly do not know what to say.
 
MIflyer12
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Re: Norwegian sells 5 737-800 to CALC

Sat Oct 19, 2019 11:19 pm

Blueknows wrote:
Also with the infusion of cash from plane sales...helps them boost liquidity. I don’t see DY going out if business anytime soon. This AC sale is smart move for DY

'Shrink to profitability.' Shades of 2000s United.
 
NWADTWE16
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 12:15 am

two crazy comments in here, anyone who thinks "oh the max problem is nearly sorted, all will be good early 2020", your nuts! New problems and issues related to the existing problems pop up every week. Even if the FAA approves the world body wont be so kind, and to be honest, the FAA was caught with their pants down here, they are certainly going shopping for a belt before approving this disaster from Boeing.

Second, the above link, for the second time (2nd thread) is from 2SEP, a full 1.5 months ago mate
Last edited by NWADTWE16 on Sun Oct 20, 2019 12:15 am, edited 1 time in total.
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Varsity1
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 12:15 am

Blueknows wrote:
Also with the infusion of cash from plane sales...helps them boost liquidity. I don’t see DY going out if business anytime soon. This AC sale is smart move for DY


You realize they're losing billions right?

50 million is pennies
"PPRuNe will no longer allow discussions regarding Etihad Airlines, its employees, executives, agents, or other representatives. Such threads will be deleted." - ME3 thug airlines suing anyone who brings negative information public..
 
Iloveboeing
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 1:38 am

Wouldn't WN have been a better buyer for those 738s? After all, they're capacity-strained due to the MAX. Plus, WN seems to prefer the 738, as it's seemed to work out well for them.
 
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Spacepope
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 1:45 am

Iloveboeing wrote:
Wouldn't WN have been a better buyer for those 738s? After all, they're capacity-strained due to the MAX. Plus, WN seems to prefer the 738, as it's seemed to work out well for them.

WN has yet to pull the trigger on any used 800s.

Crystal ball prediction: these will end up as freighters. The BCF program alone is looking at delivering 17 conversions alone this year.
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planesarecool
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 8:36 am

Varsity1 wrote:
Blueknows wrote:
Also with the infusion of cash from plane sales...helps them boost liquidity. I don’t see DY going out if business anytime soon. This AC sale is smart move for DY


You realize they're losing billions right?


You realise a billion NOK isn't a billion USD right?

Probably not.
 
Cunard
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 9:07 am

I've said it before as have others on numerous occasions but it's true to say from reading his posts past and present that ''Blueknows... Nothing''!
94 Countries, 327 Destinations Worldwide, 32 Airlines, 29 Aircraft Types, 182 Airports, 335 Flights.
 
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scbriml
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 10:32 am

Varsity1 wrote:
Blueknows wrote:
Also with the infusion of cash from plane sales...helps them boost liquidity. I don’t see DY going out if business anytime soon. This AC sale is smart move for DY


You realize they're losing billions right?


Like the US legacies did year after year? :scratchchin:
Time flies like an arrow. Fruit flies like a banana!
There are 10 types of people in the World - those that understand binary and those that don't.
 
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aemoreira1981
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 10:50 am

Someone83 wrote:
Norwegian has sold 5 737-800s to a company owned by Chinese CALC. Aircraft to be delivered in Q4 2019 and Q1 2010. After repayment of debt, it will strengthen Norwegian's liquidity by $50 millions. It will also increase the equity, without saying how much. But at least it mean the market value of the aircraft was higher than the book value

https://newsweb.oslobors.no/message/487328

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA ("the Company"), has signed an agreement for sale of five Boeing 737-800 aircraft with Aircraft Recycling International Limited (“ARI”) a commonly held entity of China Aircraft Leasing Group Holdings Limited (“CALC”). The aircraft are currently operated by the Company, and the deliveries will take place late in Q4 2019 and Q1 2020. Sale proceeds will be used to repay debt and to increase the Company´s liquidity. The transaction is expected to increase the Company's liquidity by approximately USD 50 million after repayment of debt and have a positive equity effect. The sale is in line with the Company’s continued strategy of capitalizing on the scale built up over the last few years and the changed focus from growth to profitability.


USD $50M is 469.2M NOK...a pretty hefty cash infusion. Interesting is what frames are to be sold.
 
Someone83
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 10:57 am

While not confirmed:

I’ve heard LN-NGR, LN-NGO, EI-FJA and EI-FJE is 4 of them.

Although I’m not able to confirm it by now
 
Someone83
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 10:58 am

Iloveboeing wrote:
Wouldn't WN have been a better buyer for those 738s? After all, they're capacity-strained due to the MAX. Plus, WN seems to prefer the 738, as it's seemed to work out well for them.


So far, former Norwegian 737-800s have mostly ended up with Korean and Chinese low cost carriers
 
MartijnNL
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 11:20 am

CX747 wrote:
The delivery hiatus of the 737 Max has created some necessary moves. In addition, production of the Max never stopped and they are rolling down the line today. As for the end, it is in sight. Looking at timetables and carriers resources, first revenue flights in early 2020.

The end of the Max might as well be in sight. Earlier timetables stated the return of the type in July, August and September. Timetables prove nothing.
 
HP69
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 20, 2019 9:32 pm

It should help with debt.
 
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aemoreira1981
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Re: Norwegian sells 5 737-800 to CALC

Sun Oct 27, 2019 3:45 pm

Someone83 wrote:
While not confirmed:

I’ve heard LN-NGR, LN-NGO, EI-FJA and EI-FJE is 4 of them.

Although I’m not able to confirm it by now


The other one may be LN-NGT, which has already been parked by Norwegian and will be placed with China's Joy Air. Prior to that sale, Norwegian (or rather Arctic Aviation Assets) had placed these frames on operating lease elsewhere.
 
juliuswong
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Re: Norwegian sells 5 737-800 to CALC

Tue Oct 29, 2019 6:54 am

Skyliner-aviation.de is reporting several movement for Norwegian B737NG fleet.
B737 -8JP 39047 3630 SE-RRP Norwegian Air Sweden first in svc 26oct19 ARN-LPA-ARN after transfer ex LN-DYP
B737 -8JP 39420 3891 EI-FJE Norwegian Air International ferried 27oct19 OSL-RZE prior paint & delivery to? (+ 39419/3878 EI-FJA 20oct19)
B737 -8JP 41121 4739 LN-NGR Norwegian ferried 26oct19 OSL-EMA for paint prior delivery to?
B737 -8JP 41125 4774 LN-NGT Norwegian ferried 26oct19 OSL-SNN for paint prior delivery to Joy Air
Source: https://www.skyliner-aviation.de/regdb. ... av4&page=4
- Life is a journey, travel it well -
 
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Yakamoz
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Re: Norwegian sells 5 737-800 to CALC

Wed Oct 30, 2019 9:42 pm

LN-NGO is painted in TK livery. There are news TK will take 6 737NG of Norwegian.
 
Someone83
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Re: Norwegian sells 5 737-800 to CALC

Fri Nov 01, 2019 8:10 am

Norwegian has announced sale of another 737-800. After repayment of debt, the liquidity is improved by $15 millions

https://newsweb.oslobors.no/message/488396

Arctic Aviation Assets, a subsidiary of Norwegian Air Shuttle ASA ("the Company"), has signed an agreement for the sale of one Boeing 737-800 aircraft, subject to final documentation. The aircraft is currently operated by the Company and the delivery will take place in Q4 2019. Sale proceeds will be used to repay debt and to increase the Company´s liquidity. The transaction is expected to increase the Company's liquidity by approximately USD 15 million after repayment of debt and have a positive equity effect.
 
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spinkid
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Re: Norwegian sells 5 737-800 to CALC

Sat Nov 02, 2019 2:24 am

If these frames were headed for D checks in the near future, that helps Norwegian save money as well. They have pulled back quite a bit of flying even with the loss of the MAX planes.and the routes that ended with those.

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