Sale And Leaseback Arrangements
Sale and Leaseback Arrangements refer to a financial transaction in which an airline sells its aircraft to a lessor and then leases it back for a long-term period. This arrangement allows the airline to free up capital that was previously tied up in the aircraft, which can be used for other purposes such as paying off debt or investing in new aircraft. The lessor, in turn, earns a return on their investment through the lease payments made by the airline. Sale and Leaseback Arrangements are a common practice in the aviation industry and are often used by airlines to manage their fleet and finances.
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