11 May 2012 – aircraft sale and leaseback
As mentioned in our feature in the latest issue of cityconfidential, the group has now confirmed that it has agreed the sale and leaseback of 11 Boeing 757 aircraft and 6 Boeing 767 aircraft in a deal that will raise almost £183m for the group. These proceeds are to be retained to provide additional liquidity to the group. The group has also agreed in principle to sell and leaseback a further 2 Boeing 757 aircraft. The group has also confirmed that although the seasonal first half losses to 31 March will be wider than usual, summer bookings have strengthened in recent weeks. The sale and leaseback has strengthened the group’s financial position and although it is early days in the group’s recovery we maintain our recommendation of BUY.