Indigo Airlines executes Sale and Lease back deal
Like other Indian air carriers, Indigo airlines has also executed a sale and leaseback deal on the five jets. The airline has booked 100 Airbus A-320s and is planning to execute similar lease deals for the first 15 airbus A-320s. Sale and lease back process is being adopted by most of the airlines across the world. In this type of arrangement the carrier has the ease to pay out from the earnings from the aircraft. Indian carriers Jet Airways, Deccan Aviation and Kingfisher Airlines have also closed such kind of deals.
At present Indigo has a fleet of five Jets and has booked Airbus A-320s to enlarge its fleet. Indigo is operating as a low cost budget airline. The company has not bought any aircraft and is playing safe by executing sale and lease back deal to maintain cash flows. The airline is aiming at a faster growth in future.