IndiGo in talks to leaseback 12 of its ATR aircraft to raise funds

Forum Gandhi Mumbai | Updated on August 11, 2020

IndiGo has initiated conversations with two lessors for ‘sell and leaseback’ of 12 ATR 72-600 and its engines.

Two people privy to the information said the talks have been on with at least two lessors, including Aergo Capital and DAE. According to one of them, “Each of these aircraft is likely to generate $18-20 million for the low-cost carrier. The plan is ‘sell and leaseback’ these 12 aircraft to one lessor only.”

Hopes to raise ₹2,000 crore

Ronojoy Dutta, CEO, IndiGo said the airline was planning to sell and lease back some of its aircraft during the earnings call of Q1FY21 but he had not spelt out the details then.

The airline is hoping to raise about ₹2,000 crore through this route.

Responding to a query from BusinessLine, IndiGo confirmed that the airline is mulling to sell and lease back these 12 ATRs, along with all other ATRs, CEOs and some spare engines.

No timeframe given

“We are working to close these transactions but it will be difficult to give a specific timeframe for its completion. Apart from this, we will continue to finance our new aircraft deliveries in the ordinary course as more planes are delivered,” the spokesperson said.

Currently, IndiGo has the largest fleet in India. As of June 30, 2020, IndiGo has 274 aircraft in its fleet, of which it owns 29. The airline has has 25 ATRs in its fleet.

Currently, IndiGo operates 400 flights daily. Due to the pandemic, it had to take harsh steps, including salary cuts, furloughs for its employees.

Published on August 11, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like