According to sources familiar with the matter, Norse Atlantic - a Norwegian budget airline that launched long-haul operations in 2022 - is in discussions to lease six of its Boeing 787 Dreamliners to Pakistan International Airlines and Biman Bangladesh Airlines. These talks remain at an early stage, and no final agreement has been reached, the sources said, requesting anonymity because the negotiations are private.
This development comes as the carrier faces a tight cash position and rising fuel expenses. Norse Atlantic did not respond to a request for comment.
Norse Atlantic, which started long-haul flying in 2022, has encountered a turbulent market since its inception. The airline's business model depends on keeping its 787 fleet active, either through its own routes or by leasing aircraft to other carriers. With the IndiGo agreement coming to an end, Norse must secure new lessees to avoid having idle planes, which would further strain its finances.
The Lease Talks and What They Cover
The six aircraft could be leased under two different structures. A dry lease covers only the aircraft itself, while a wet lease includes crew, maintenance, and insurance. According to the sources, the deals might be arranged under either format depending on the needs of the prospective lessees.
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Pakistan International Airlines acknowledged that it is in discussions with multiple parties and emphasized that no agreement has been finalized. Biman Bangladesh Airlines, a government-owned carrier that operates both Boeing 787s and 777s, did not reply to requests for comment. Neither Bangladesh's State Minister for Civil Aviation M. Rashiduzzaman Millat nor a Biman spokesperson responded to inquiries after business hours. Pakistan International's current fleet consists entirely of 777 aircraft.
Last month, Boeing's international president, Brendan J. Nelson, met with Pakistan's Interior Minister Mohsin Naqvi to discuss a potential purchase of 16 aircraft.
Why Norse Is Under Pressure
At the close of Q1 2026, Norse held approximately $5 million in cash and equivalents, down from $25 million in the prior year. Given this thin cash buffer, finding new lessees for its 787s is critical for the airline's survival.
Norse has been implementing cost reductions. The carrier is cutting 75 positions to achieve $50 million in annual savings, and it suspended all Los Angeles service earlier this year. In May, Bloomberg News reported that Norse had brought on JPMorgan Chase to initiate a sale process.
The Iran conflict has driven jet fuel costs higher, while American tariffs have prompted Norse to shift capacity toward Asia. With a fleet of 12 Dreamliners, Norse currently has six of those jets on lease to IndiGo, India's largest carrier. Last month, IndiGo announced it would return those planes and end its widebody routes to London and Amsterdam, citing geopolitical issues.
What This Means for Investors
For investors, the situation highlights the fragility of Norse Atlantic's balance sheet and its dependence on external leasing arrangements. The loss of the IndiGo contract represents a significant revenue gap, and the outcome of the ongoing talks with the South Asian carriers will be crucial. If the leases are secured, they could provide much-needed cash flow and stabilize operations.
However, if negotiations fall through, Norse may face further liquidity challenges, potentially accelerating the need for a broader restructuring or sale. The airline's ability to adapt its network and find partners in Asia will be a key indicator of its long-term viability in a competitive and cost-sensitive market.
The airline's precarious position reflects broader challenges facing new long-haul budget carriers, which must balance competitive ticket pricing against volatile fuel costs and the substantial capital requirements of maintaining a widebody fleet. Norse's strategy of leasing aircraft to other operators provides a secondary revenue stream but also creates dependency on finding willing lessees in a market where geopolitical tensions and regional economic conditions can quickly alter demand for additional capacity.
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