IndiGo swings back to cash for some aircraft deliveries
IndiGo is once again looking at opportunities to pay cash outright for some of its future aircraft deliveries. The airline has long relied on sale-and-leaseback financing for its fleet, but in May 2018 signalled that it would seek to place more aircraft on its balance sheet. It reversed course on that by October that year, as tougher market conditions saw it focus on maintaining cash. However, in its latest earnings call, CFO Rohit Philip noted that the carrier's "optimum cash balance" was around 15% of revenue, equating to roughly INR45b (US$652m). At June 30, IndiGo had INR173b in cash, of which around INR76b was unrestricted. "Based on that we do have some excess cash we are looking at all the options…as to what is the optimal way to utilise them to buy some of the aircraft with cash," Philip adds. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-07-23/unaligned/indigo-swings-back-to-cash-for-some-aircraft-deliveries
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IndiGo swings back to cash for some aircraft deliveries
IndiGo is once again looking at opportunities to pay cash outright for some of its future aircraft deliveries. The airline has long relied on sale-and-leaseback financing for its fleet, but in May 2018 signalled that it would seek to place more aircraft on its balance sheet. It reversed course on that by October that year, as tougher market conditions saw it focus on maintaining cash. However, in its latest earnings call, CFO Rohit Philip noted that the carrier's "optimum cash balance" was around 15% of revenue, equating to roughly INR45b (US$652m). At June 30, IndiGo had INR173b in cash, of which around INR76b was unrestricted. "Based on that we do have some excess cash we are looking at all the options…as to what is the optimal way to utilise them to buy some of the aircraft with cash," Philip adds. <br/>
