Mumbai: Budget airline SpiceJet Ltd said on Monday it plans to sell 16 Boeing 737 aircraft for more than $1.1 billion to Nomura Babcock & Brown Co Ltd., and lease them back again.
It had concluded a similar deal with the investment banker for four aircraft earlier this year.
SpiceJet had placed orders for 20 B-737 aircraft and deliveries would be made over 22 months beginning January 2007.
The sale would be effected on delivery, the company said in a notice to the stock exchange. Airlines typically book a profit of between $2 million and $4 million by sale and lease back of each plane, aviation industry players said.
India's air carriers, buffeted by rising oil prices amid increased competition, have resorted to sale and lease back of planes to fund expansion in a fast-growing market.
Rival Deccan Aviation Ltd has closed deals for four Airbus A-320 planes, while top domestic carrier Jet Airways Ltd sold and leased back five aircraft in April.
SpiceJet's shares rose 5.7 per cent to Rs 42.45 in a firm Mumbai market.
Comments
0 comment