easyJet completes Airbus A319 sale and leaseback agreement with Aergo
Low-cost giant easyJet has struck a deal with Dublin-based leasing company Aergo Capital Limited to sell and lease some of its A319 jets. The agreement, announced a few days ago, is a first between the LCC and the Irish lessor. easyJet has already struck similar deals with other lessors, raising much-needed cash to stay afloat during the pandemic.
A319 sold and leased
Ten of easyJet’s Airbus A319s have switched to Aergo under a successful sale-leaseback agreement, as the lessor officially announced a few days ago. The ten A319-100 aircraft entered service in 2008 and the deal was completed within 12 weeks of entering into a letter of intent.
Kenton Jarvis, easyJet Chief Financial Officer, commented:
“We are delighted to welcome Aergo among our new lessors and consider them a key partner as we continue to use sale and leaseback for the A319 type as we transfer these aircraft from the fleet and introduce a new Airbus A320 NEO technology.”
This is the first time that Aergo has entered into a commercial agreement with easyJet. Fred Browne, CEO of the company, said:
“We are delighted to have concluded this first transaction with easyJet. We found the easyJet team pleasant to deal with, both in the early stages of the transaction and throughout the incredibly efficient closing logistics. We look forward to further strengthening our relationship with the easyJet team. »
The deal covers 10 of easyJet’s A319-100 aircraft. Photo: Getty Images
With 62 aircraft, according to ch-aviation, the A319-100 makes up the majority of aircraft in easyJet UK’s fleet, although currently less than half are in active service. They are also the oldest, with an average age of 13.8 years.
easyJet Europe and easyJet Switzerland also have several A319-100s, all of which are on average between 10 and 14 years old. The airline is phasing out these older aircraft with new neo versions of the A320 and A321. Currently, easyJet UK has over 30 A320Ns and 10 A321Ns, all between 2 and 3.5 years old.
Last year easyJet CEO Johan Lundgren discussed the carrier’s fleet strategy for the coming years. The airline has more than 100 planes on order, with an option for another 78. The bulk of these orders are for the A320neo, with several larger A321neos also on the way.
The airline has had similar sale-leaseback agreements in the past to raise funds. Photo: Getty Images
Previous sale-leaseback agreements
easyJet is not new to the sell-and-leaseback strategy. During the pandemic, the airline included this method, among others, to raise capital. By August last year, the carrier had reduced ownership of its fleet from around 70% to 50%.
In October it signed two deals – one with Wilmington Trust SP Services for five Airbus 320s for over $190m, and the other with Sky High 112 Leasing Company for four A320s, raising over $205m .
Lundgren said easyJet has a good relationship with all of its lessors and has served the airline well under favorable sale and leaseback agreements. In a conversation with Simple Flying last year, he said:
“The very good reputation with the lessor is that he knows that we take care of our aircraft. We have an excellent maintenance program.”
The airline hopes the latest relationship with Aergo will prove as fruitful as the previous ones.
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