Norwegian 'close to leasing SSJ's'
Join Date: Dec 2010
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Norwegian may have found a "loophole" for large-scale operation to Asia.
If the company is to succeed with low-cost long-distance travel to South-East Asia, access to the Siberian Corridor is a must, but the aviation agreement between Scandinavia and Russia only gives permission to SAS and there is little likelihood that there will be any change to it.
But, if a deal is made with Russian aircraft manufacturer Sukhoi and it includes the purchase of 40 aircraft, then it could open up the Siberian corridor for Norwegian! These 40 Sukhoi aircraft do not have Norwegian use for themselves, but they can be added to the new JV leasing company, where the Chinese bank owns 70% and Norwegian 30%. Sukhoi aircraft are already operating in China and the need for short and medium-haul aircraft in China and a number of other markets in Asia is considerable, thus there is limited downside risk if an order for 40 new Sukhoi aircraft is placed for the new JV leasing company.
If the company is to succeed with low-cost long-distance travel to South-East Asia, access to the Siberian Corridor is a must, but the aviation agreement between Scandinavia and Russia only gives permission to SAS and there is little likelihood that there will be any change to it.
But, if a deal is made with Russian aircraft manufacturer Sukhoi and it includes the purchase of 40 aircraft, then it could open up the Siberian corridor for Norwegian! These 40 Sukhoi aircraft do not have Norwegian use for themselves, but they can be added to the new JV leasing company, where the Chinese bank owns 70% and Norwegian 30%. Sukhoi aircraft are already operating in China and the need for short and medium-haul aircraft in China and a number of other markets in Asia is considerable, thus there is limited downside risk if an order for 40 new Sukhoi aircraft is placed for the new JV leasing company.
