Finnair takes delivery of eighth A350 aircraft and closes sale and leaseback agreement

Finnair has finalised an arrangement, announced previously as a memorandum of understanding, by which it sells the Airbus A350 aircraft delivered on April 3, to GE Capital Aviation Services (GECAS) and leases the aircraft back for its own operation. The initial lease period is 12 years, and the lease includes extension options. The arrangement has a positive effect of approximately €50m on Finnair’s operating result for the second quarter of 2017, comprising a gain on sale and currency gains on pre-delivery payments and hedges. Following the arrangement, Finnair has the flexibility to pay for the remaining three A350 deliveries scheduled for 2017 in cash. Finnair has ordered a total of 19 new A350-900 XWB aircraft from Airbus, of which eight have now been delivered.