Finnair (HEX: FIA1S) has secured financing, arranged by BNP Paribas, for its third Airbus A350-900 XWB, which was delivered on 30 December 2015, the company said.
The transaction amounts to approximately EUR 135 million, implemented using a Japanese Operating Lease with Call Option (JOLCO) structure, where the transaction amount is treated in Finnair´s IFRS accounting as a loan and the aircraft as owned.
The transaction is part of Finnair´s diversified financing plan for its ongoing long-haul fleet renewal program, which currently consists of 19 new Airbus A350-900 XWB aircraft scheduled for delivery between 2015 and 2023. As previously announced, the first two A350s that have already been delivered, and a further two expected to be delivered in 2016 and 2017, have been financed through sale and leaseback agreements with GECAS.
Finnair´s first A350s have commenced revenue flights from Helsinki to Shanghai, Beijing and Bangkok. The next A350 destinations will be Hong Kong and Singapore.
Finnair is a network airline specialising in passenger and cargo traffic between Asia and Europe. Helsinki´s geographical location gives Finnair a competitive advantage, since the fastest connections between many European destinations and Asian megacities fly over Finland.