Singapore-headquartered aircraft operating leasing company BOC Aviation Limited has signed sale-and-leaseback agreements with InterGlobe Aviation Ltd-operated IndiGo for eight new Airbus A320neo aircraft.
A sale and leaseback or SLB is a financial transaction in which the owner (airline), sells the aircraft, and then takes it back on lease from the buyer (lessor). This kind of deal typically removes the aircraft, and its associated debt, from the carrier’s balance sheet.
Most Indian airlines prefer to place huge aircraft orders with manufacturers like Boeing Co and Airbus SE, which are subsequently financed through sale and lease back (SLB) arrangements made with leasing companies.
