Friday, 28 December 2018

Sale and leaseback deal agreed for Icelandair

Icelandair Boeing 737 Max                  Photo Icelandair
The uncertain future of the Icelandair Group took a more secure step forward this week as the company announced it has entered into a new financing facility with BOC Aviation regarding the pre-delivery payments of the new Boeing 737 MAX Aircraft it has on order from the US planemaker. 

The new jets are scheduled for delivery during 2019 and 2020 and the final scheduled delivery date of the aircraft is in March 2020. The total amount of the financing facility is approximately $200 million but the company’s liquidity will increase by USD 160 million before year-end due to the agreement.

In addition to the PDP facility, the parties have also agreed to a Sale and Leaseback of two Boeing 737 MAX aircraft, one of them to be delivered in 2019 and the second one in 2020. The lease period is 12 years but includes a purchase option 30 months into the lease.  

Forward financial statement dates for Icelandair in 2019
DateYear Event
Week 62019 Q4 2018 Results and Consolidated Financial Statement 2018
08-Mar2019 Annual General Meeting
Week 182019 Q1 2019 Results
Week 312019 Q2 2019 Results
Week 442019 Q3 2019 Results