Under sale and leaseback model, the airline sells its planes to a leasing company and then leases them back
New Delhi, NFAPost: Akasa Air has signed a contract with Irish leasing company Griffin Global Asset Management for the sale and leaseback of five Boeing 737 Max aircraft, a statement said.
Under sale and leaseback model, the airline sells its planes to a leasing company and then leases them back. This frees up the cash that the airline has spent in buying the aircraft.
Akasa Air had signed a deal with Boeing to purchase 72 Max aircraft on November 26, 2021, approximately three months after the Directorate General of Civil Aviation (DGCA) gave the green light to Max planes.
Akasa Air is scheduled to receive its first Max aircraft this month and is planning to launch its commercial flight operations in July.
A statement by Griffin Global Asset Management said it “is pleased to announce the mandate for purchase and leaseback of five Boeing 737-8 aircraft with Akasa Air, a new airline based in India”.
The airline, which is backed by ace investor Rakesh Jhunjhunwala and aviation veterans Vinay Dube and Aditya Ghosh, received the no-objection certificate (NOC) from the Ministry of Civil Aviation in August 2021 to launch commercial flight operations.
Commenting on the contract with Griffin, Akasa Air Founder Managing Director and CEO Vinay Dube said the company is pleased to have Griffin as its partner in its growth in aviation sector.
“The high degree of confidence and endorsement from the Griffin team is a testimony to Akasa Air’s robust and sustainable future,” said Akasa Air Founder Managing Director and CEO Vinay Dube.
(Agencies)
