leadf
logo-loader
viewTUI AG

TUI completes US$226mln sale and leaseback for five new Boeing aircraft

The deal is part of the travel company’s re-fleeting programme

TUI AG - TUI completes US$226mln sale and leaseback for five new Boeing aircraft

TUI AG (LON:TUI) has announced the completion of a US$226mln sale and leaseback agreement with BOC Aviation for five new Boeing 737 MAX-8 aircraft.

The first aircraft is expected for delivery in the first quarter of the group's 2021 financial year with the remaining four to come before the summer 2021 season.

READ: TUI to shut 166 stores in UK and Ireland as COVID-19 keeps customers at home

The deal is part of the travel company’s re-fleeting programme, under which it expects to carry out further sale and leaseback financing.

The FTSE 250-listed firm said it is estimated to create a total lifetime lease obligation of around €223m to commence by the end of the financial year 2021.

In May, TUI announced an operational rehaul to create a "leaner" business model, resulting in 8,000 job losses, amid the coronavirus crisis.

Shares shed 3% to 280.87p early on Monday.

--Adds shares--

Quick facts: TUI AG

Price: 270.6 GBX

LSE:TUI
Market: LSE
Market Cap: £1.6 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

GinsGlobal Managing Director sees Healthcare and Healthcare innovation as...

HANetf and GinsGlobal Index Funds' Managing Director Anthony Ginsberg joined Steve Darling from Proactive to share details about the success of their Healthcare Innovations ETF. Ginsberg discusses how COVID-19 had made a direct impact on that fund, especially in the telemedicine...

2 days, 2 hours ago

2 min read