Lufthansa raises E600m from sale-and-leaseback on a dozen narrowbodies

Lufthansa Group has struck sale-and-leaseback deals covering a dozen Airbus A320-family aircraft under which it will generate proceeds of around E600m. The 12 narrowbodies are no more than two-years old and are in operation across mainline carrier Lufthansa Airlines, regional operator Lufthansa CityLine and low-cost unit Eurowings. The aircraft have been leased back to Lufthansa Group under six-year terms. Lufthansa says the transaction forms part of the group’s strategy to finance new aircraft through ”a mix of cash, Japanese Operating Leases (JOLCOs) and operating leases”. The E600m proceeds will be generated in Q4 of this year. The sale will also result in a book gain of around E100m.<br/>