PIA to Lease Two Norse Atlantic 787-9s for UK Routes

Strategic Fleet Expansion

Pakistan International Airlines (PIA) has finalized a landmark Aircraft, Crew, Maintenance, and Insurance (ACMI) agreement with Norse Atlantic ASA to lease two Boeing 787-9 Dreamliners. This partnership, announced on October 9, 2026, marks a significant step in the flag carrier's ongoing efforts to modernize its long-haul operations. The flight operations are scheduled to commence at the beginning of November 2026, targeting high-demand routes between the United Kingdom and Pakistan.

This agreement serves as a pivotal move for PIA, which has been undergoing a comprehensive corporate transformation following its privatisation in December 2025. During that sale, a 75% controlling stake in the carrier was acquired by a private consortium led by the Arif Habib Group for PKR 135 billion (approximately $482 million). The introduction of the 787-9 fleet represents the first time the Dreamliner type has been operated within the Pakistani market, offering a premium cabin experience for the large Pakistani diaspora in the UK.

The ACMI Business Model

For Norse Atlantic, the deal provides a critical avenue to redeploy capacity following the conclusion of its previous wet-lease contract with IndiGo in July 2026. By shifting toward an "Airline on Demand" strategy, Norse aims to secure predictable cash flows and minimize exposure to the volatility inherent in scheduled long-haul operations. Under the terms of the agreement, Norse provides the aircraft, crew, maintenance, and insurance, allowing PIA to rapidly scale its international network without the immediate burden of long-term asset ownership.

Eivind Roald, who took over as CEO of Norse Atlantic in November 2025, described the agreement as the foundation of a long-term strategic partnership. The airline currently operates a fleet of exactly 12 fuel-efficient 787-9 Dreamliners, which it continues to deploy across its networks in North America, Europe, Africa, and Asia. For Norse, this agreement mitigates the financial impact of the recent contract termination by IndiGo, ensuring that its widebody assets remain productive.

Fleet Modernization Context

PIA’s current fleet consists of 31 aircraft, primarily composed of Boeing 777 and Airbus A320 family jets. While the airline serves a vast network extending from China to North America, it has faced challenges in maintaining full capacity due to grounded aircraft. Finance Minister Muhammad Aurangzeb has been actively seeking financing opportunities through the Export-Import Bank of the United States (EXIM) to facilitate further aircraft purchases and secure necessary spare parts to restore its grounded 777 fleet to service.

On October 8, 2026, representatives from Pakistan and the United Kingdom held discussions regarding deeper aviation cooperation. These talks included potential arrangements for Airbus aircraft and Rolls-Royce engine support, with the possibility of UK export credit facilities to help address the airline's immediate requirements. These discussions underscore the government's commitment to stabilizing the national carrier following its transition to private ownership.

Why This Matters

This partnership is critical for stabilizing PIA’s international connectivity and meeting the high demand for direct travel between the UK and Pakistan. By leveraging the ACMI model, PIA can bypass the lengthy lead times associated with direct aircraft procurement while providing immediate capacity relief on key routes. The move signals a shift toward more flexible, asset-light operational strategies for the newly privatized carrier, while simultaneously providing Norse Atlantic with the revenue stability required for its current long-haul business model.