Originally Posted by
docav8tor
“Southwest Airlines Co. (the “Company”) has entered into sale-leaseback transactions with certain counterparties for 10 of the Company’s Boeing 737-800 aircraft and 10 of the Company’s Boeing 737 MAX 8 aircraft. The Company expects to receive gross proceeds of approximately $815 million, which it intends to use for general corporate purposes.”
SEC-Show
Yes. Again, cash is king. Monetizing your owned assets in a transaction that is favorable to you (capital lease at super low interest vs outright ownership) makes perfect sense when you have a high credit score.
Other airlines are attempting similar arrangements and not having much luck.