American Airlines announced today it has entered into a sale-leaseback arrangement with International Lease Finance Corporation (ILFC), a leading international leasing organization and wholly owned subsidiary of American International Group, Inc. (NYSE: AIG), to finance 15 previously-ordered Boeing 737-800 Next Generation aircraft, two of which have been delivered and the remainder of which are scheduled to be delivered to American in 2012.
ILFC will purchase the aircraft from American and immediately lease the aircraft back to American under a sale-leaseback financing arrangement.
“We are pleased to establish a strategic relationship with ILFC,” said AMR Chief Financial Officer Bella Goren. “This transaction, which will provide financing for 15 of our new 737-800 aircraft, is an effective means for diversifying our funding sources and we look forward to a long-term partnership with ILFC.”
“ILFC is pleased to be able to support American Airlines in this strategic manner,” ILFC Chief Executive Officer, Henri Courpron commented. “Our ability to work with one of the largest airlines in the world to executefleet management decisions is core to our business initiatives.”
The financing of each aircraft under this arrangement will be subject to certain terms and conditions.