IndiGo to wet lease an additional 3 787-9 aircraft from Norse Atlantic Airways

IndiGo has been a surprise story over the past couple of years as it breaks away from the mould that observers have cast it, investors and everyone else. The airline has a significant focus on international expansion. To this effect, it ordered the Airbus A350 last year, already has the Airbus A321XLR on order (of which they are the largest customer), and is now working on launching operations in Western Europe.

IndiGo will wet lease additional Norse Atlantic Airways’ 787 Aircraft.

During the Christmas—New Year break, it emerged that IndiGo will not wait until 2027 to launch operations in Western Europe but will move in earlier.

Norse Atlantic Airways’ 787-9 aircraft

In November 2024, Norse Atlantic reported to its investors that the airline had tentatively finalised a deal to lease six of its 787-9 jets without naming the customer. Here is the announcement,

On 22 November 2024, the Company entered a detailed letter of intent (the “LOI”) with a reputable international airline for wet lease agreements (“wet lease”) for six aircraft, subject to final agreements, mutual corporate approvals and regulatory approvals. The initial contract term could be further extended, subject to regulatory approval, to cover a longer-term period, with an estimated contract value of USD 462 million over that extended term. Pursuant to the LOI, and provided final agreements are executed based on the terms therein, two aircraft are expected to be deployed in February 2025, with an additional four aircraft expected in September 2025. Norse will be entitled to payment for 350 block hours per aircraft each month, with additional payments possible if utilization exceeds 350 hours per month.

On February 6, 2025, IndiGo and Norse Atlantic announced they are proceeding with the 787-9 damp lease project. To begin with, IndiGo will damp lease a Boeing 787-9 Dreamliner widebody jet from Norse Atlantic Airways, with operations starting in March as part of its efforts to tap into long-haul routes. The initial term of the agreement is six months, extendable to up to 18 months, subject to regulatory approvals. Yesterday, IndiGo announced that this first aircraft would be used on the Delhi – Bangkok and return route.

As a part of the agreement, IndiGo will get an aircraft on lease, along with the cockpit crew and maintenance services, while IndiGo will provide its cabin crew (just like they do with its Turkish Airlines’ Boeing 777 operations).

Now, IndiGo has announced that it will add three damp leases, making a total of four Norse Atlantic aircraft wet-leased to IndiGo. However, the timeline for this lease is not clear at the moment. IndiGo and Norse continue to explore opportunities to broaden their cooperation and the possibility of contracting more aircraft.

Pieter Elbers, CEO, IndiGo, says,

We are delighted to confirm extension of our partnership with Norse Atlantic Airways for damp lease of additional three Boeing 787-9 aircraft. This will help us make strategic inroads and establish the brand in the European market. As we execute our broader strategy to strengthen and extend our international network, we are steadily advancing towards our vision of becoming a global player by 2030, firmly rooted in India and driven by continuous expansion.

IndiGo needs to start working out its widebody network, even with borrowed aircraft right now, given that the airline needs to get in on the bilateral allocation and slots at important airports such as London, which are already slot-constrained. So, if they have to compete with Air India effectively, they must start working now rather than in 2027. Also, their experience in the India – Europe sectors will help them figure out how to scale up their A350 order book. IndiGo loves to block capacity much in advance, so this tip-toe approach is the beginning of their bigger orders. Think of it as their 100-aircraft order from 2006, except on the widebody aircraft.

IndiGo will also receive its first Airbus A321XLR aircraft in 2025, which will help the company expand internationally.

Bottomline

IndiGo has confirmed its plans to lease three more Norse Atlantic Boeing 787-9 aircraft, making it a total of four aircraft on lease to them. The lease of the first aircraft will start in March 2025 and last 6-18 months. This is IndiGo’s pivot from starting to fly long-haul in 2027 to flying long-haul in 2025.

What do you think of IndiGo leasing Norse Atlantic Boeing 787-9 aircraft?

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