SpiceJet to sell and lease back 16 aircraft

Budget airline SpiceJet Ltd. said on Monday it plans to sell 16 Boeing 737 aircraft for more than USD 1.1 billion to Nomura Babcock&Brown Co. Ltd., and lease them back again, reports Reuters.
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 begining 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 USD 2 million and USD 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.
14/08/06 Moneycontrol.com

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