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.
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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.
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