Stocks

Indigo jumps 10% on leaseback plans

Our BureauMumbai Mumbai | Updated on August 12, 2020 Published on August 12, 2020

Shares of InterGlobe Aviation Ltd, owner of Indigo Airlines, were up 10 per cent at ₹1,034 on the BSE on Wednesday. The stock had closed at ₹940 on Tuesday. The stock gained on Wednesday after Business Line reported that the airline was in talks with two lessors for ‘sell and leaseback’ of 12 ATR 72-600 and its engines. The airline is hoping to raise about ₹2,000 crore through this.

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.”

As of June 30, 2020, IndiGo has 274 aircraft, of which it owns 29, and 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.

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Published on August 12, 2020
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