TUI Travel, Europe's biggest travel firm, announced today that it has signed an agreement with AerCap Holdings and Deucalion Aviation for the sale and leaseback of 19 of its aircraft for $526 million (£266 million) in cash. The company said it expects the transaction to be earnings neutral for the year to Sept 2008.
TUI said the transaction will allow it to ¡®further increase the flexibility of its business model while securing access to modern and fuel-efficient aircraft¡¯. The deal proceeds will be used to pay down existing debt. A spokesman said the transaction will have no impact on its ongoing discussions with Lufthansa regarding a potential merger of Germanwings and TUIfly, on which it said it will update the market in due course.
The group will continue to operate all 19 aircraft on operating leases with one to seven year terms, within its TUIfly, Jet4You, HapagFly, Thomsonfly, and TUIfly Nordic fleets. The aircraft comprise eleven Boeing 737-800s, six Boeing 757-200s, and two Boeing 767-300ERs.
The book value of the planes at May 31 was $681 million. The resulting loss will be treated as a separately disclosed item in for the year to Sept 30, 2008. |
