SAS Reaches Financing Agreements for New Aircraft Deliveries
SAS has entered sale and leaseback agreements for one Airbus A350 and three A320neos, as well as pre-delivery payments financing for an additional five A320neos. The New A350 was delivered last Friday (March 26th), while the eight A320neos will be delivered in 2022.
On Monday (March 29, 2021), SAS announced that they have reached financing agreements for new aircraft deliveries. The carrier has concluded a sale and leaseback (S&LB) transaction for one Airbus A350-900 and three Airbus A320neos with CDB Aviation Lease Finance. The new A350-900 was delivered last Friday (March 26th) and the three Airbus A320neos will be delivered in the spring of 2022. Additionally, the agreement includes pre-delivery payments (PDP) for a further five Airbus A320neos which will also be delivered in 2022. The agreement means that SAS has sold the aircraft to the lessor and will lease them back on a long-term basis.
In Monday’s announcement, SAS’ Chief Financial Officer, Magnus Örnberg, said,
“SAS has previously worked together with CDB Aviation Lease Finance for other S&LB transactions, and we are glad that we have secured financing of new aircraft deliveries together with Pat Hannigan and his team. The financing enables financing of our transition towards a unified fleet with significantly lower emissions in a cost and cash efficient way.”
With the new financing agreement SAS has secured financing for all future aircraft deliveries through the second quarter of 2022. Currently, the airline has a total of 80 Airbus A320neos, three A321LRs and eight A350-900s on order. The new aircraft are part of SAS’ sustainability development with the goal of a “one type fleet” for SAS’ short-haul operations.
SAS is the leading airline in Scandinavia, normally carrying over 30 million passengers annually from its main hubs in Copenhagen, Oslo and Stockholm to 125 destinations in Europe, the US and Asia (pre-pandemic figures). The company has targeted a reduction in carbon emissions by 25 percent by 2025 compared to 2005 levels and hopes to transition to 100% biofuel for domestic flights by 2030. SAS also offers ground handling services, technical maintenance and cargo services. The carrier is a founding member of the Star Alliance, which offers an extensive global network.