Originally Posted by
NEDude
It is true it is about an asset sale, but it is not an asset Norwegian uses in its operation. It is also not a full sale of the assets. Norwegian will have a stake in the leasing company that is buying the airplanes, and will be able to earn some income off of the leases. The big thing this does is reduces the financial obligations of Norwegian over the next few years, significantly reducing their debt load, which has been a noose around their necks.
I absolutely agree, large debt piles that linger around for years are the death-knell of companies - just witness Thomas Cook Group. Getting control of debt so that the EBITDAR is not completely eaten away by interest payments and leasing costs is the ONLY way to survive long term. Arguably, Norwegian should sell further assets and consolidate around areas of its operation that are profitable or have the potential to be profitable in the near future. "Slow burners" and prestige routes / assets need to go...nowish.