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Old 07-13-2025 | 05:39 AM
  #20  
Aero1900
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Joined: Nov 2012
Posts: 3,760
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From: 1900D CA
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Originally Posted by ThatsTheSpirit
I've heard this a ton, but I don't get it. How does the Sale-Leaseback make a profit? Please explain to like I am 5...
When Indigo placed the massive 400 aircraft order back some years ago they negotiated a significant discount on the planes. When we take possession of a new aircraft we immediately sell it to a leasing company and then lease the aircraft from them for 8 to 12 years. When we sell it to the leasing company they pay market rate for the aircraft which is maybe 10 Million more than our negotiated discount price from Airbus. Frontier then pockets the $10 M and we begin making monthly lease payments on the aircraft
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