December 31, 2018

Finnair closes A350 leaseback

Flag carrier Finnair finalised in December a sale and leaseback arrangement for one A350-900 aircraft with Nomura Babcock & Brown (NBB), with BBAM Aircraft Management as arranger and lease servicer.

In the arrangement, Finnair sold the A350 aircraft, delivered in June 2016, to NBB and leased the aircraft back for an initial 12-year lease term with lease extension options.

The arrangement has a positive effect of approximately €44 million ($50 million) on Finnair’s operating result for the fourth quarter of 2018, comprising a gain on sale and currency gains on pre-delivery payments (PDPs) and hedges.

Finnair has ordered 19 A350-900 aircraft, 12 of which have been delivered.

According to the current delivery schedule, Finnair will receive the remaining seven A350 aircraft by the end of 2022.