Airbus Updates No.3788

 easyJet Agrees Airbus A319 Sale And Leaseback With Aergo

Low-cost giant easyJet has entered into a deal with Dublin-based leasing company Aergo Capital Limited to sell and lease back some of its A319 airplanes. The agreement, announced a few days back, is a first between the LCC and the Irish lessor. easyJet has previously made similar deals with other lessors, raising the much-needed cash to stay afloat during the pandemic.

A319s sold and leased back

Ten of easyJet’s Airbus A319s have gone to Aergo in a successful sale and leaseback agreement, as officially announced by the lessor a few days ago. All ten A319-100 planes entered service in 2008, and the deal was closed within 12 weeks of entering into an LOI.

This is the first time Aergo has made a business deal with easyJet. Fred Browne, the company’s CEO said,

“We are delighted to have completed this first transaction with easyJet. We found the easyJet team a pleasure to deal with, both in the early stages of the transaction, and throughout the impressively efficient closing logistics. We very much look forward to further strengthening our relationship with the team at easyJet.”

 

Fleet

At 62 aircraft, according to ch-aviation, the A319-100 make up the majority of airplanes in easyJet UK’s fleet, although currently, less than half are in active service. They’re also the oldest, with an average age of 13.8 years.

easyJet Europe and easyJet Switzerland also have several A319-100s, all averaging between 10 and 14 years of age. The airline is phasing out these older airplanes with newer neo versions of the A320 and A321. Currently, easyJet UK has more than 30 A320N and 10 A321N, all between 2 and 3.5 years old.

Last year, easyJet CEO Johan Lundgren discussed the carrier’s fleet strategy for the coming years. The airline has more than 100 airplanes on order, with the option for an additional 78. The bulk of those orders is the A320neo, with several larger A321neo also on the way.

Previous leaseback agreements

easyJet is not new to the sale and leaseback strategy. Over the course of the pandemic, the airline included this method, among other things, to raise capital. By August last year, the carrier had reduced its fleet ownership from around 70% to 50%.

In October, it signed two deals – one with Wilmington Trust SP Services for five Airbus 320 aircraft for more than $190 million, and the other with Sky High 112 Leasing Company for four A320s, raising more than $205 million.

Lundgren has said that easyJet maintains a good relationship with all its lessors, and it has served the airline well in favorable sale and leaseback deals. While speaking with Simple Flying last year, he said,

"The very good reputation with the lessor is because they know we take care of our aircraft. We have a great maintenance program.”

The airline will be hoping that the latest relationship with Aergo will also turn out just as successful as the previous ones.