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Sale & Leaseback

 

Sale and leaseback is a financial transaction in which the seller (airline) of the lease aircraft sells the product to the lessor (ALAFCO). The aircraft will be leased back from the lessor to the lessee (seller) and the aircraft will no longer be owned by the seller.

Although these type transactions are structured as operating leases, the prospective lessee’s purpose and implicit benefit is often to raise capital by refinancing owned assets.