Norse Atlantic Airways is scheduled to begin operating flights for PIA in November under the agreement.

Norse Atlantic Airways will lease two Boeing 787-9 Dreamliner aircraft to Pakistan International Airlines (PIA), the Norwegian airline announced on Friday, as it seeks to strengthen its finances and expand its aircraft-leasing business.

The agreement will help Norse retain a key aircraft, crew, maintenance and insurance (ACMI) contract following IndiGo’s decision in July to end its wet-lease arrangement with the Norwegian carrier.

Facing rising jet fuel costs, Norse Atlantic has been reducing its exposure to low-cost transatlantic services while expanding its ACMI operations. Under this business model, airlines lease aircraft along with crews and related services to other carriers for an agreed fee.

PIA Flights to Begin in November

Norse Atlantic Airways is scheduled to begin operating flights for PIA in November under the agreement.

The Norwegian airline said long-term ACMI contracts with major international carriers help protect its business from fluctuations in passenger demand and fuel prices.

The company added that it was in discussions with other airlines regarding potential ACMI agreements as it seeks to expand this segment of its business.

Norse Atlantic currently operates a fleet of 12 Boeing 787 Dreamliner aircraft, which are used for long-haul passenger services and leasing arrangements.

Norse Atlantic Explores Strategic Options

The agreement with PIA comes as Norse Atlantic continues to explore ways to improve its financial position amid rising operating costs and challenges in the transatlantic aviation market.

In July, the airline launched a formal process to explore a possible sale or merger as part of a broader review of strategic options for its business.

Expanding ACMI operations could provide the carrier with more predictable revenue through long-term contracts with other airlines, reducing its reliance on selling tickets directly to passengers.

For PIA, the arrangement will provide access to two Boeing 787-9 Dreamliners for its scheduled operations, with flights under the agreement expected to begin in November.