Norse Atlantic and IndiGo end 787 damp-lease amid India-Europe route challenges
Indian budget carrier was using six Norse twinjets but had already opted to return one of them. Long-haul airline Norse Atlantic's entire damp-lease operation with IndiGo is being terminated after the Indian carrier encountered difficulties with its services to Europe. The partnership will end on 1 November. IndiGo had damp-leased six Boeing 787-9s from Norse Atlantic, but had already agreed to return one of the twinjets after axing its route to Manchester in the UK. Geopolitical issues in the Middle East had caused IndiGo to rethink the Manchester service, and Norse says the situation is still affecting India-Europe connections. "There is no doubt that the elevated fuel prices, airspace disruptions and longer flight routes resulting from the Middle East conflict have affected the commercial viability of the arrangement for both parties," states Norse chief executive Eivind Roald. Norse says the two airlines have "mutually agreed" to discontinue the lease arrangement. "We have…jointly concluded that alternative deployment of the aircraft will be more commercially beneficial to both parties," says Roald. Norse is holding talks with several airlines regarding lease opportunities for up to five 787s. It adds that it plans to use part of the fleet returned by IndiGo on its own network, in order to increase capacity on "selected profitable routes" – such as New York and Orlando – during the winter 2026-27 season. The end of the IndiGo partnership is nevertheless a setback for Norse, which has been struggling to become profitable, and had adopted the capacity leasing strategy to counter seasonal fluctuations on its own network. While IndiGo had leased half of Norse's 787 fleet, Roald insists there are positive aspects to the termination. "Return of these six aircraft opens up strategic opportunities that were not available to us before," he says. "We are seeing strong demand for modern, fuel-efficient long-haul aircraft, and we also see attractive opportunities to deploy additional capacity within our own network. "Our priority is to use this increased flexibility to improve profitability and create long-term value for our shareholders." Norse has been undertaking a strategic review of its business and says it will embark on a formal process – which could involve a sale, merger or other partnership – "given the level of interest received to date". IndiGo senior vice-president for planning Abhijit Dasgupta expresses "appreciation" for Norse's "valued partnership". Termination of the lease arrangement comes just as IndiGo is undergoing a management transition, with chief executive-designate Willie Walsh about to take up the top post and a newly-appointed chief financial officer in place.