Norse Atlantic lands lease deal with PIA

Norse Atlantic Airways has agreed to provide Pakistan International Airlines with two Boeing 787-9 jets on lease, the Express Tribune reported, citing an announcement the Norwegian carrier made on Friday. Flights for PIA are due to begin in November. Norse described the deal as its latest step to strengthen its finances.

The agreement also helps Norse keep a key ACMI contract, which covers aircraft, crew, maintenance and insurance, after IndiGo, India's largest airline, announced in July that it planned to terminate its wet-lease deal with the group. Under these deals, Norse provides planes and flight crews to other airlines in return for payment. The company has also been scaling back its exposure to low-cost transatlantic routes as jet fuel costs soared.

The airline says extended contracts with large overseas carriers protect it from changes in travel demand and fuel costs, and it is in discussions with other airlines about possible further ACMI deals. Its current fleet includes 12 Boeing 787 Dreamliners. Back in July, the company opened a formal process examining a potential sale or merger as it weighed its strategic options.