Indigo May Junk Sale-And-Leaseback Model, Opt For Outright Buys

Indigo May Junk Sale-and-leaseback Model, Opt For Outright Buys

IndiGo would replace the industry’s traditional sale-and-leaseback model for aircraft financing with outright purchases for some of its future fleet additions, underscoring the focus on cutting total ownerships expenses by the low-cost airline that Monday posted the biggest-ever quarterly profit in Indian aviation.

The adoption of the new business model, according to senior executives at the country’s largest carrier, would help IndiGo lower overall costs of fleet ownership. ET had reported six days ago that an imminent change in global accounting standards will, among other things, impact IndiGo’s aircraft lease rental strategy the most, and said that the new norms may prompt carriers to making outright purchases.

Chief financial officer Rohit Philip said IndiGo will shift to a model of outright purchase. Aircraft kept in the fleet for long are better owned than leased as direct ownership leads to cost optimisation, he said.  Read More…

You may also read!

Come Up With Indigenous Solutions For Modernisation Of Defence Forces: Sitharaman To Industry

In a big encouragement for the Indian defence industry, Defence Minister Nirmala Sitharaman on Saturday (18 November) asked the


Bangladesh Poses A Big Security Challenge Says Indian Minister

Bangladesh poses a 'big security challenge' to India on par with Pakistan and China, the junior Home Minister Hansraj


Restrictions In Parts Of Srinagar After Militant Killed In Shootout

Authorities imposed restrictions in parts of the Jammu and Kashmir summer capital to maintain law and order, officials said


Leave a reply:

Your email address will not be published.

Mobile Sliding Menu