Norse Atlantic completes aircraft lease deal with Indigo in ‘volatile market’

Norse Atlantic Airways has finalised a deal to lease two more aircraft to Indian carrier IndiGo in a “volatile market”.

The wet lease agreement means six of the long-haul low cost carrier’s 12 Boeing 787-9 Dreamliners will operate routes for IndiGo following a letter of intent published last November.

The arrangement secures additional fixed long-term revenues for Norse Atlantic and reduces the company’s market risk.

It is part of strategy to create strong efficiencies through maximum utilisation of the fleet, combining demand from both charters and its own own scheduled network.

The additional two aircraft are expected to start operations by early 2026, serving long-haul routes out of India. 

The initial term of the agreement is six months, extendable up to 18 months, subject to regulatory approvals. 

“Both parties remain committed to exploring opportunities to further extend this period, subject to regulatory approvals,” Norse said. 

The Norse aircraft will enable IndiGo to make an early entry into the long-haul market and establish itself in Europe while the airline awaits the delivery of Airbus A321 XLR and A350-900 aircraft from 2027.

Indigo is expected to start its first European services to Manchester and Amsterdam from July with three flights a week on both routes.

IndiGo mainly operates domestic and regional short to medium-haul services out of India but is in the process of expanding its global reach by adding long-haul services.

The first Norse aircraft was delivered in March and is serving IndiGo’s Delhi–Bangkok route.

IndiGo has placed a firm order for 30 Airbus 350-900 widebody aircraft with an option for additional 70, with deliveries expected from 2027.

Norse Atlantic founder and chief executive Bjorn Tore Larsen said: "This agreement represents an important milestone in our collaboration with IndiGo and reinforces our partnership with one of the world’s leading airlines. 

“The wet lease agreement with a total of six aircraft means that we further strengthen our strategic and financial position in a volatile market.”