Finnair close sale-leaseback on one A350

Eleanor Steed
By Eleanor Steed September 30, 2016 11:26

Finnair close sale-leaseback on one A350

Finnair has finalised an arrangement, announced last year as a memorandum of understanding, of a sale-leaseback transaction for one A350 delivered to the airline today with GE Capital Aviation Services (GECAS). The initial lease period is 12 years, and the lease includes extension options.

The arrangement has a positive, non-recurring effect of approximately €40 million on Finnair’s operating profit for the third quarter of 2016, including a gain on sale and currency gains on pre-delivery payments and hedges.

A similar agreement is also in place for Finnair’s next A350 aircraft, which will materialise at the time of delivery, currently anticipated in the first quarter of 2017.

Finnair has ordered a total of 19 new A350-900 XWB aircraft from Airbus and has now received seven. According to the currently anticipated delivery schedule, Finnair will have 11 A350 aircraft by the end of 2017 and 19 by the end of 2023.

Disclosures on the financing arrangements for the A350 aircraft will be made as the agreements are finalized.

Eleanor Steed
By Eleanor Steed September 30, 2016 11:26