Last week, the Lufthansa Group announced that they have completed a sale and leaseback transaction for 12 short-haul aircraft.
This article will cover the details surrounding Lufthansa Groups’ sale and leaseback transaction.
Lufthansa 12 Aircraft Sale & Leaseback
Alongside Clover Aviation Capital and BBAM (Babcock & Brown Aircraft Management), the Lufthansa Group has completed the sale and leaseback of 12 short-haul Airbus A320 Family aircraft.
In a bid to help modernise its fleet as well as secure its cash flow, the German operator has opted for the strategy to finance its investment into new aircraft through a mixture of cash, JOLCOs (Japanese Operating Leases) and operating leases.
The aircraft in question that are a part of this sale and leaseback transaction are up to just two years old, signifying this is Airbus NEO aircraft of which are currently operated by Lufthansa Airlines, Lufthansa CityLine and Eurowings.
This sale and leaseback will generate proceeds of circa €600 million during the fourth quarter (Q4) of 2023. This agreement concludes that the aircraft are currently leased back to the ground for a term of 72 months.
As part of this lease, there are obligations recognised as debt under IFRS 16 that amounts to €200 million, with a book gain for the group of circa €100 million which will be recognised in EBIT.
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