CDB Aviation agrees United SLB deal | News | Airfinance Journal

CDB Aviation agrees United SLB deal

CDB Aviation has agreed to purchase and lease back 12 new aircraft from US carrier United Airlines.

The deal comprises two Boeing 787-9 aircraft and 10 737 Max 8 aircraft.

Each aircraft will be leased back by the lessor to United under an operating lease agreement upon their deliveries “between 2020 and 2021”.

CDB Aviation acquired 11 aircraft in the first half of 2020: Two aircraft from direct OEM orders, seven via sale and leaseback (SLB) transactions and another two via portfolio acquisitions.

Prior to this new deal with United, CDB Aviation had future commitments for six SLB deals: One in this year’s second half, three in 2021 and two in 2022.

As for United, this week’s SLB with CDB Aviation is very similar to another SLB contract the airline inked in April, with Singapore-based BOC Aviation at that time, and covering six 787-9s and 16 737 Max 9s.

In July, United reported a net loss of $1.6 billion in the “most difficult financial quarter” in its 94-year history compared with a net profit of $1.05 billion a year earlier.

Its adjusted loss, which excludes an income tax benefit and other items, was $2.6 billion.

Total operating revenues were down 87.1% year-over-year, on an 87.8% decrease in capacity year-over-year.

The airline took a $47 million impairment for aircraft engines removed from operations, a $6 million charge for the early termination of several regional aircraft finance leases and $8 million in other miscellaneous impairments.

Transaction SnapshotUnited Airlines | Sale leaseback | 04-20 | $1.1bn (est) | 22xA/c

Value:
$1,182.00m USD
Full Details

Transaction SnapshotCDB Aviation | Bond issuance | 11-19 | $130m

Financial Close:
19/11/2019
SPV:
CDBL Funding 1
Value:
$130.00m USD
Full Details

Transaction SnapshotUnited Airlines | Sale leaseback | 09-20 | $696m (est.) | 12xA/c

Value:
$696.00m USD
Full Details

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