Nor­we­gian’s Ir­ish unit ear­marks €813m to help fund aircraft pur­chases as ex­pands its fleet

Irish Independent - Business Week - - BUSINESSWEEK - John Mul­li­gan

ARC­TIC Avi­a­tion As­sets, an Ir­ish unit of Nor­we­gian Air Shut­tle that han­dles man­age­ment ac­tiv­i­ties such as aircraft ac­qui­si­tion and fi­nanc­ing for the group, had €813m of pre­pay­ments ear­marked to cover aircraft pur­chases at the end of 2016, ac­counts for the busi­ness show.

Nor­we­gian Air Shut­tle, headed by CEO Bjorn Kjos, has been sig­nif­i­cantly ex­pand­ing its aircraft fleet and uses the Arc­tic Avi­a­tion ve­hi­cle as one of its pri­mary ve­hi­cles for such group trans­ac­tions.

Newly-filed ac­counts for Arc­tic Avi­a­tion show that at the end of 2016, it had set aside €348m for aircraft pay­ments that would fall due within 12 months, and an ad­di­tional €465.5m for pay­ments that were due af­ter one year.

“Pre-de­liv­ery pay­ments re­late to aircraft on or­der and are cap­i­talised by the com­pany as a financial as­set,” the ac­counts note. “Pre-de­liv­ery pay­ments that arise within 12 months be­fore the de­liv­ery of each aircraft are clas­si­fied as cur­rent as­sets.”

Arc­tic Avi­a­tion keeps its cash on de­posit with Danske Bank.

Nor­we­gian will have 144 aircraft in its fleet by the end of this year, in­clud­ing 21 Boe­ing 787 Dream­lin­ers. It has 110 Boe­ing 737 Max aircraft on or­der.

Nor­we­gian launched flights be­tween Ire­land and the United States dur­ing the sum­mer, us­ing Boe­ing 737 jets. It in­tends to op­er­ate all the ser­vices us­ing Boe­ing 737 Max aircraft, which it started tak­ing de­liv­ery of in June.

Nor­we­gian is also open­ing a pi­lot base in Dublin. It said this week that it will host open days with a view to re­cruit­ing as many as 40 pi­lots for its 737 aircraft in the cap­i­tal ini­tially to serve its Ir­ish routes.

Yes­ter­day, Air Canada said its low-cost Rouge ser­vice will also use the 737 Max to op­er­ate flights next year from Dublin to Mon­treal and Shan­non to Toronto.

A full Air Canada ser­vice will op­er­ate be­tween Dublin and Toronto from next month, hav­ing pre­vi­ously been an Air Canada Rouge ser­vice. Air Canada Rouge also flies from Dublin to Vancouver. Air Canada Rouge will op­er­ate a busi­ness and econ­omy class on the Max jets.

The Depart­ment of Busi­ness, En­ter­prise and In­no­va­tion’s ‘tak­ing care of busi­ness’ will bring up to 30 State bod­ies to­gether to of­fer ad­vice to small busi­nesses, in­clud­ing a free half-day event where busi­nesses can meet ex­perts and get ad­vice on Novem­ber 8 at the Print­works Con­fer­ence Cen­tre in Dublin Cas­tle. Pic­tured is Philip Martin, owner of the Lit­tle Ass Bur­rito Bar on Dublin’s Daw­son Street, and Tá­naiste and Jobs Min­is­ter Frances Fitzger­ald

Eir chief ex­ec­u­tive Richard Moat

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