Norwegian budget airline Norse Atlantic is currently seeking a potential buyer or partner as part of its ongoing efforts to restructure and reduce costs. In a recent statement, the airline publicly acknowledged for the first time that it is considering a merger or sale.

The carrier stated, “Given the level of interest we have received as part of our strategic review, the board has decided to initiate a formal process, which may result in a sale, merger, or partnership. ” The company also added that it will provide further updates when appropriate.

This announcement comes after Norse Atlantic ended its agreement with IndiGo, an Indian airline, for the use of six of its aircraft under an aircraft, crew, maintenance, and insurance (ACMI) deal. According to officials, some of the returning aircraft will be incorporated back into Norse Atlantic’s operations, while others may be leased out through a new ACMI agreement with a different partner carrier.

Norse Atlantic’s CEO, Eivind Roald, expressed gratitude for the cooperation with IndiGo over the past 18 months but acknowledged that the recent Middle East conflict, resulting in higher fuel prices and airspace disruptions, has affected the profitability of the arrangement for both parties. He stated, “We have mutually agreed that finding alternative uses for the aircraft will be more commercially beneficial for both of us.

The airline has been facing financial challenges due to the increasing costs of fuel, prompting the implementation of a comprehensive restructuring plan earlier this year. This plan included layoffs, furloughs for some crew members, and temporary pay cuts for non-flying staff. Additionally, Norse Atlantic is in the process of relocating its headquarters from Arendal, Norway, to Oslo.

In May, Bloomberg reported that Norse Atlantic had enlisted the help of JPMorgan Chase to lead a potential sale process. The airline primarily operates long-haul flights to destinations in Europe, Southeast Asia, South Africa, and North America.

Norse Atlantic’s decision to seek a potential buyer or partner is a strategic move to ensure long-term sustainability and profitability for the airline. With the ongoing challenges in the aviation industry, this decision could potentially lead to a more stable and prosperous future for the company.