Air Canada has accomplished the sale and leaseback transactions for 3 Boeing 737 MAX eight plane with Jackson Sq. Aviation.
Together with an analogous deal for six Boeing 737 MAX eight plane with Avolon Aerospace Leasing, the flag-carrier has raised a complete of US$365 million and long-term lease commitments of US$345 million.
The 9 plane had been delivered to Air Canada over the previous three years.
“Because the begin of the Covid-19 disaster, Air Canada has accessed monetary markets quite a few occasions and has efficiently raised virtually $6 billion in liquidity, on cheap phrases and circumstances, together with with this transaction, because it continues to take care of liquidity ranges to mitigate the challenges and uncertainty forward.
“We’re very happy to be extending our sturdy relationship with Avolon and starting a brand new relationship with Jackson Sq. Aviation,” mentioned Michael Rousseau, deputy chief government officer and chief monetary officer of Air Canada.
Because the begin of the Covid-19 pandemic within the first quarter of 2020, Air Canada has raised virtually $6 billion in liquidity.
Moreover, it not too long ago accomplished two long run financings to switch $1.four billion in short-term debt coming due inside the subsequent 9 months.
Air Canada is utilising the online proceeds from these transactions to complement its working capital and for different basic company functions.
The web proceeds from the transactions will serve to extend Air Canada’s money place, thereby permitting for added flexibility within the implementation of mitigation and restoration measures in response to the Covid-19 pandemic.
Air Canada will replace the quantity remaining in its unencumbered asset pool as a part of its third quarter 2020 monetary reporting course of.