Sunday, 1 September 2013

Norwegian Air Shuttle establishing Irish asset management company

Norwegian Boeing 737-800
Norwegian Air Shuttle announced it's establishing an asset management company in Ireland, which will be incorporated under the laws of Ireland and will have USD as its functional currency adding "Ireland is the largest aviation finance cluster in Europe which makes the country a natural location given Norwegian’s global expansion and large aircraft orders."

The incorporation of the new subsidiary will also limit currency exposure to the balance sheet. The currency exposure is primarily driven by a mismatch between USD denominated loans and aircraft balance sheet values denominated in NOK, managed today by extensive hedge arrangements

The first aircraft to be placed under the control of the asset management company is the Boeing 737-800 due for delivery this month,  the company will operate as lessor of the aircraft.

In June, Norwegian Long-Haul obtained temporary approval from the Irish Aviation Authority to register their fleet of six Boeing 787-8s in Ireland; an arrangement that will expire on 24th December , and is reportedly pursuing its own Air Operator's Certificate (AOC) and Air Carrier Operating Licence (ACOL) with the Irish Commission for Aviation Regulation (CAR).

Last week in Dublin for four days was Norwegian Long-Haul second Boeing 787-8 EI-LNB construction 35305 leased from ILFC Ireland Ltd for post delivery application of decals and tail painting.

Norwegian operates scheduled services from Dublin Airport to Helsinki, Copenhagen and Oslo.

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