Air Canada today announced that it recently completed sale and leaseback transactions for three Boeing 737 MAX 8 aircraft with Jackson Square Aviation and six Boeing 737 MAX 8 aircraft with Avolon Aerospace Leasing Limited for total proceeds of US$365 million (C$485 million) and long-term lease commitments of US$345 million (C$458 million). The nine aircraft were delivered to Air Canada over the past three years.
“Since the start of the COVID-19 crisis, Air Canada has accessed financial markets numerous times and has successfully raised almost $6.0 billion in liquidity, on reasonable terms and conditions, including with this transaction, as it continues to maintain liquidity levels to mitigate the challenges and uncertainty ahead. We are very pleased to be extending our strong relationship with Avolon and beginning a new relationship with Jackson Square Aviation,” said Michael Rousseau, Deputy Chief Executive Officer and Chief Financial Officer of Air Canada.
Since the start of the COVID-19 pandemic in the first quarter of 2020, Air Canada has raised almost $6.0 billion in liquidity. Additionally, it recently completed two long term financings to replace $1.4 billion in short-term debt coming due within the next nine months.
Air Canada is utilizing the net proceeds from these transactions to supplement its working capital and for other general corporate purposes. The net proceeds from the transactions will serve to increase Air Canada’s cash position, thereby allowing for additional flexibility in the implementation of mitigation and recovery measures in response to the COVID-19 pandemic.
Air Canada will update the amount remaining in its unencumbered asset pool as part of its third quarter 2020 financial reporting process. Air Canada will continue to explore financing arrangements as additional liquidity may be required or to refinance existing debt to push out maturities.