Originally Posted by
Arty13
I get the liability and leveraging stuff, but I understand this type of financial move about as well as I understand female logic.
Why else would they make this shift in ownership? Any explanation will be appreciated.
Indigo got on Airbus's order books using their own credit and cash. Now, with good interest rates (I assume - these guys don't move a muscle if it doesn't benefit them financially) they did this.
It's just a sale / lease-back transaction to put cash back in their pockets but have use of the shells with "no money down and low low monthly payments." Now they're playing with house money and putting their own cash to better use elsewhere.
Franke may or may not have cracked the airline code, but private equity KNOWS how to make money off of other people's money.