tom_82
9th Apr 2002, 11:33
My question is in regards to the benefits and even negatives associated with sale and lease-back agreements of aircraft to an airline.
Singapore Airlines recently completed an agreement with IEM Airfinance B.V, the Amsterdam-based aircraft operating lessor, under which IEM will buy a Boeing 747-400 and a 777-200 from SIA and then lease each of them back to SIA for ten years.
I understand that one of the benefits associated with this practice is the capital gain. With that in mind, is that the reason why SIA is making this move and if so, what are they going to be using the capital gain for.
I assume it is not to buy more aircraft as they have just recently deferred delivery of five B777s and a 747-400F recently after an earlier defferal of 10 A340-500s.
I would greatly appreciate any enlightenment on the SIA situation and any comments on the practice as a whole.
Thank you all
Regards
Rosser
Singapore Airlines recently completed an agreement with IEM Airfinance B.V, the Amsterdam-based aircraft operating lessor, under which IEM will buy a Boeing 747-400 and a 777-200 from SIA and then lease each of them back to SIA for ten years.
I understand that one of the benefits associated with this practice is the capital gain. With that in mind, is that the reason why SIA is making this move and if so, what are they going to be using the capital gain for.
I assume it is not to buy more aircraft as they have just recently deferred delivery of five B777s and a 747-400F recently after an earlier defferal of 10 A340-500s.
I would greatly appreciate any enlightenment on the SIA situation and any comments on the practice as a whole.
Thank you all
Regards
Rosser