Boeing 787s May Find A New Home

Struggling Norse Atlantic Airways is exploring new deployment opportunities for up to six Boeing 787-9s through lease discussions with Pakistan International Airlines (PIA) and Biman Bangladesh Airlines.

The discussions follow the conclusion of Norse’s damp-lease agreement with IndiGo, which had operated up to six Norse 787-9s before deciding to end the arrangement.

Bloomberg reported that the Norwegian low-cost long-haul carrier is now considering potential lease arrangements to replace contracted revenue lost through the IndiGo wind-down following IndiGo’s decision to end flying with the Dreamliner.

Current options include dry leases involving only the aircraft, as well as wet-lease or ACMI arrangements, under which Norse would provide aircraft, crew, maintenance and insurance, making the aircraft more attractive to Pakistan International Airlines and Biman Bangladesh Airlines.

The talks remain private, according to reports, with no agreement yet finalised. However, the approach suggests the need to finalise a contract to generate stable income.

The prospective deal would encompass nearly half of the fleet; previously, six units were deployed at IndiGo, and the aircraft would provide a more stable contracted revenue source while Norse reduced its own commercial flight programme.

Now Norse Atlantic Airways is speaking closely with several customers, it says, about the leasing opportunities that may present themselves. It expects to retain some returned capacity for its own winter network, with the opportunity to send these to more profitable markets and reassess by the northern summer of 2027.

For PIA and Biman, the two companies targeted, a 787-9 lease could offer a more immediate long-haul solution without the risk of purchasing planes and the intense capital expenditure. Biman already flies the 787-8 and 787-9, so adding the latter from Norse would not impact commonality.

Why These Boeing 787s Are Being Moved Around

Norse’s business model means operating an entire fleet of Boeing 787 Dreamliners is a significant risk. That risk materialised earlier this decade when it could not sustain its long-haul flying. As a result, the Nordic carrier looked to leases with its 787 fleet to ensure a steady stream of revenue.

Now the airline sees a model that combines its smaller, less-scheduled long-haul flying with ACMI and wet-lease options. Under the ACMI agreement, the provider, in this case Norse Atlantic, would put its aircraft, crew, maintenance, and insurance to a customer in need, with that customer providing the route, ticket sales and overall product.

This structure keeps aircraft utilisation stable and ensures Norse Atlantic’s revenue doesn’t rely solely on its own scheduled passenger services, which face volatile demand throughout the year.

The IndiGo partnership was a key agreement for Norse with the Indian carrier, committing to paying for 350 guaranteed block hours per month using the aircraft and additional compensation if above that threshold. These agreements spread the financial risk of having these Boeing 787s still in the name of Norse Atlantic Airways, particularly during North Atlantic’s weaker demand periods.

However, Norse has faced financial pressure with or without IndiGo and its ACMI/lease offerings. Bloomberg said the airline is seeing low cash reserves coupled with higher fuel costs, which has led it to scrap its 2026 guidance and raises uncertainty about its long-term outlook without investment or a course correction amid economic challenges.

Releasing aircraft to PIA or Biman would help offset losses after IndiGo decided to terminate its 787 lease contract, but it still wouldn’t be enough to keep the airline stable long-term. The airline still has its own battles to work through after a challenging period since launch.