Sale and Leaseback Transaction: Southwest Sells 36 Boeing 737s, United Buys 18 Embraer E175s
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Southwest Airlines and United Airlines are making some big moves in the world of aviation. Southwest is selling 36 Boeing 737-800s as part of their sale and leaseback agreement with Babcock & Brown Aircraft Management (BBAM). This deal will see the aircraft leased back to Southwest through Incline Aviation III for up to 37 months.
Tammy Romo, the Executive Vice President and CFO of Southwest Airlines, described this transaction as part of their ongoing transformational plan called “Southwest. Even Better.” This move is aimed at generating cash to modernize their fleet and support their capital allocation strategy.
Meanwhile, United Airlines is buying 18 Embraer E175s through a sale and leaseback agreement with Mesa Airlines. These planes will be leased back to United under specific lease agreements outlined in the transaction.
Both Southwest and United are looking to generate significant proceeds from these deals to fund future fleet modernization and provide returns to their shareholders. This is an exciting time for both airlines as they navigate the ever-changing landscape of the aviation industry.
It’s clear that these transactions are strategic moves by Southwest and United to ensure they remain competitive in the evolving aviation market. Stay tuned for more updates on their progress and future endeavors.
