Finnair Completes Lease Financing Transaction for Next Airbus A350
As part of the carrier’s rebuild program, Finnair has finalized a lease financing agreement for their next Airbus A350 delivery with JLPS Holding Ireland Limited. Under the agreement, Finnair will assign the purchase of the aircraft to JLPS and lease it back for at least 12 years.
On Wednesday (February 17, 2021), Finnair announced the completion of a lease financing transaction for their next Airbus A350-900 XWB. Under the agreement, Finnair has assigned the purchase of the aircraft to JLPS Holding Ireland Limited and will then lease the aircraft back for a minimum of 12 years, with JLPS serving as the lessor and lease servicer. Finnair expects delivery of the aircraft during the second quarter of 2022, with the lease starting concurrent with the aircraft’s sale and including a storage period from Q4 2021.
The company expects to achieve a positive cash effect from the transaction of more than US $100 million in 2021-2022, compared to a situation where the aircraft was purchased and owned by Finnair. The airline has ordered a total of 19 new Airbus A350-900 XWBs of which 16 have been delivered as of September 1, 2020. The aforementioned sale and leaseback transaction is for Finnair’s 17th aircraft and the remaining two are scheduled for delivery in the fourth quarter of 2024 and the first quarter of 2025.
Specializing in passenger and cargo traffic between Asia and Europe, Finnair is a modern premium network airline with a competitive advantage due to their geographical location. Sustainability is at the heart of everything Finnair does, and the carrier is committed to cutting their net emissions by 50 percent by the end of 2025 (compared to a 2019 baseline) and achieving carbon neutrality by the end of 2045. The carrier is also a member of the global oneworld® alliance and its shares are traded on the Nasdaq Helsinki stock exchange.