Southwest Completes 737 Leaseback Transaction | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 09.26.16

Airborne 09.27.16

Airborne 09.28.16

Airborne 09.22.16

Airborne 09.23.16

Airborne Hi-Def On YouTube

Airborne 09.26.16

Airborne 09.27.16

Airborne 09.28.16

Airborne 09.22.16

Airborne 09.23.16

Thu, Jan 15, 2009

Southwest Completes 737 Leaseback Transaction

LCC Raises $350 Million In Short-Term Profit

Southwest Airlines confirmed Wednesday it has completed the second half of a leaseback transaction designed to raise $350 million in cash, by selling off 10 of its Boeing 737s.

As ANN reported, the first five planes were sold to an undisclosed leasing company back in December, in a deal which came to light in a filing with financial regulators.

The Dallas Morning News reports the first half of the deal committed the company to lease back, operate and maintain the first five planes sold for a period of 12 years, and the ones transferred on January 8 for 16 years.

The airline will make payments of about $260,000 per month for each of the first five planes, and $253,000 per month on each of the aircraft in the latest transaction. Both payments may be adjusted for market conditions after six months.

Southwest is reportedly using the leaseback arrangement to bolster its short-term cash reserves to cover losses related to its fuel hedges. While buying fuel months and years in advance gave Southwest a considerable competitive edge when crude oil prices were skyrocketing, the hedges became a liability when jet fuel prices collapsed late in 2008.

In December, the airline raised another $400 million through the sale of senior debt instruments.

FMI: www.southwest.com

Advertisement

More News

Airborne 09.27.16: EAA's 200K!, MilPilots Get Break, UAV Pilot Applications

Also: GPS Sat, Aero-Calendar, B-21 Raider, Boeing 777X, Tecnam P2002JF, NBAA Honors Louis Seno, Alaska-Virgin Merger EAA has reached a major milestone, as the association has surpa>[...]

BlackSky Pathfinder Satellite Launched Aboard India’s PSLV

Paves The Way For 60-Satellite Constellation To Deliver High-Resolution Satellite Imaging The BlackSky Pathfinder-1 satellite was successuflly launched into a sun synchronous orbit>[...]

Several Injured By Helicopter Rotorwash At Boy Scout Event

Arriving Helo Blew Several Canoes Into A Crowd On Shore It was supposed to be the celebration of the introduction of a new program to introduce young kids to the Boy Scouts. It wou>[...]

FAA: Parachutes Did Not Open In Tandem Jump Accident

First-Time Skydiver And Instructor Fatally Injured In August The FAA has determined that a first time skydiver and his instructor were fatally injured in an accident August 6th, 20>[...]

Southwest Airlines Flight Attendants To Vote On New Agreement

Balloting To Take Place From October 16 - 31 Southwest Airlines Co. has announced that the Executive Board of Transport Workers Union (TWU) Local 556, the Union that represents our>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC