Friday, 25 December 2020

Sale and lease back deal on two Boeing 737 MAX aircraft provides lifeline for Icelandair

Welcome news has for Icelandair as it confirmed it has entered into an agreement with Sky Aero Management (SKY Leasing) on a deal for the sale and leaseback of two Boeing 737 MAX9 aircraft. 

These aircraft are expected to be delivered to the Reykjavik based airline during the second quarter of next year.  The airline has agreed on a 12-year leaseback period for the two aircraft to start as soon as the aircraft are delivered. 

The carrier has already completed a deal with BOC Aviation on the sale and leaseback of another Boeing 737 MAX aircraft. These two deals along with a backstop financing regarding the two aircraft which will not be exercised will provide a much-needed lifeline for the troubled carrier that has been operating a limited schedule with a less than 30% average load factor some time.  

The airline is still looking to make similar arrangements for a further three Boeing 737 MAX aircraft that are expected for delivery in the last quarter of 2021 and the first quarter of the next year. 

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