# easyJet confirm sale and leaseback of eleven aircraft generating total cash proceeds of $169.5 million

- Link: https://www.directorstalkinterviews.com/easyjet-confirm-sale-and-leaseback-of-eleven-aircraft-generating-total-cash-proceeds-of-169.5-million/412935470
- Published: 2020-11-06T07:51:19+00:00
- Author: Amilia Stone

**easyJet plc** (LON:EZJ) has announced the sale and leaseback of a further eleven
aircraft with two counterparties. The transactions generate total cash proceeds 
of $169.5 million (approximately £130.7m).

Ten A320 family aircraft were sold to ACS Aero 2 Beta Limited. The cash sales proceeds
were $124.5m (approximately £96.0m), and the aircraft will be leased back for an
average term of 58 months, creating lease obligations of approximately £66.8m. The
net book value of the aircraft at the date of transaction was approximately £117.9m.

easyJet also sold one A320 family aircraft to JLPS Holding Ireland Limited for cash
proceeds of $45.0m (approximately £34.7m).

Over the terms of the eleven leases the average incremental net annual headline 
cost reflected in easyJet’s income statement will be approximately £6.4 million,
which is driven by increases in interest charges and depreciation. 

On completion of these further sale and leaseback transactions, easyJet now retains
141 fully owned and unencumbered aircraft, representing approximately 41% of the
fleet.

easyJet will continue to review its liquidity position on a regular basis and will
continue to assess further funding options, including those that exist in the robust
sale and leaseback market.

Following the UK Government’s announcement on Saturday, as well as similar announcements
in Germany and France recently, easyJet now expects to fly no more than c.20% of
planned capacity for Q1 of Financial Year 2021. We remain focused on cash generative
flying over the winter season in order to minimise losses during the first half 
and retain the flexibility to ramp capacity back up quickly when we see demand return.

Share on: