Thu, Jan 15, 2009
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.
Also: SAFE, PC-12 Theft Thwarted, MyGoFlight Heli Solutions, Updated: Bell 412EPI, Big Bell 'Relentless' Deal The AgustaWestland AW609 TiltRotor program has achieved a key mileston>[...]
Actor, Pilot, And Aviation Advocate Went Down On A California Golf Course Harrison Ford sustained moderate injuries Thursday when the the airplane he was piloting ... which appears>[...]
Winter Weather Can Sometimes Put A Crimp On Recreational Flying Unless You Have Snow Skis, Tundra Tires, Or An Ice Runway The question is; what does Alton Bay, NH have in common wi>[...]
No Injuries Among The 127 Passengers Aboard The MD-88 A Delta Airlines MD-88 with 127 passengers and five crew on board arriving from Atlanta skidded off the runway at LaGuardia Ai>[...]
Flying Stuart Little's Airplane Got a little one at home? Try your tyke out on the free online airplane game, "Flying Stuart Little's Aeroplane.">[...]