Lufthansa Group conducts Sale-and-Leaseback for 12 Short-Haul Aircraft

Lufthansa German Airlines (Airbus A320)

Lufthansa Group has finalized a sale-and-leaseback deal for 12 aircraft designated for short-haul routes.

The transaction involves the sale of 12 Airbus A320 family aircraft to Clover Aviation Capital and BAM (Babcock & Brown Aircraft Management), followed by a leaseback agreement. The group expects to book a sale profit of approximately 600 million euros in the fourth quarter of 2023.

The 12 aircraft, which are all within two years of manufacture, are operated by Lufthansa German Airlines, Lufthansa CityLine, and Eurowings. The lease term is set for six years, with an estimated lease liability of around 200 million euros. The sale is anticipated to record a book profit of about 100 million euros.

This move reflects the group’s strategy to finance investments in new equipment through a combination of cash, JOLCO (Japanese Operating Lease with Call Option), and operating leases.

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