Scandinavian budget carrier Norwegian is selling five Boeing 737-800s to a Hong Kong-based recycling and asset-management entity, and will transfer the jets from the end of this year.
Norwegian is disposing of the aircraft through its Arctic Aviation Assets subsidiary and expects to increase liquidity by $50 million as a result, following repayment of debt.
"The sale is in line with the company’s continued strategy of capitalising on the scale built up over the last few years and the changed focus from growth to profitability," states the carrier.
It says it has agreed to sell the jets to Aircraft Recycling International, which is held by China Aircraft Leasing Group Holdings.
Aircraft Recycling International was set up in 2014 to provide used aircraft and engine management, as well as component and disassembly services.
It has a recycling centre in Harbin and acquired US-based Universal Asset Management, which has facilities in Mississippi, in 2017.
Norwegian operates all the aircraft involved. They will be delivered to the new owner from late in the fourth quarter of this year and during the first quarter of 2020.