Finnair takes delivery of seventh A350, closes sale and leaseback agreement

Finnair finalised (29-Sep-2016) an arrangement, already announced in 2016 as a MoU, by which Finnair sold the A350 aircraft delivered on 29-Sep-2016 to GE Capital Aviation Services Limited (GECAS) and leased back the aircraft for its own operation. The initial lease period is 12 years, and the lease includes extension options. The arrangement has a positive, non-recurring effect of approximately EUR40 million on Finnair's operating profit for 3Q2016, including a gain on sale and currency gains on pre-delivery payments and hedges. As stated previously, a similar agreement is also in place for Finnair's next A350 aircraft, which will materialise at the time of delivery, currently anticipated in 1Q2017. Finnair has ordered a total of 19 new A350-900 XWB aircraft from Airbus and has now received seven. According to the currently anticipated delivery schedule, Finnair will have 11 A350 aircraft by the end of 2017 and 19 by the end of 2023. Finnair's fleet consists of both owned and leased aircraft. [more - original PR]