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United sold 15 757's and then leases them back

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ASA_DFW

Well-known member
Joined
Apr 12, 2004
Posts
160
I guess United is getting desperate for cash. Delta did this under Leo Mullin. They sold most of the aircraft they owned and then leased them back. Later Delta went bankrupt. What other assets does United own? Not trying to flame but what is managment thinking?




NEW YORK (Reuters) - UAL Corp (UAUA.O: Quote, Profile, Research, Stock Buzz), parent of United Airlines, said on Tuesday it sold 15 Boeing (BA.N: Quote, Profile, Research, Stock Buzz) 757 aircraft and arranged to lease them back in a deal which adds about $150 million of cash to the company's balance sheet.
UAL sold the single-aisle planes to East Shore Aircraft, but will continue to operate and maintain the aircraft as normal.
United, the U.S. No. 3 airline, has now raised more than $250 million of the $300 million of additional liquidity it said it expected to raise in the current quarter, on top of the nearly $1.4 billion raised in the third quarter.
Airlines such as United are looking for ways to add cash to their balance sheets to protect them from volatile oil prices and a steep drop in travel demand expected next year.
 
Another reason for sale/leaseback

I guess United is getting desperate for cash. Delta did this under Leo Mullin. They sold most of the aircraft they owned and then leased them back.

Many airlines started doing this years ago, even when they were making money. One reason was that depreciation write-offs became more valuable to leasing companies than to the airlines. A number of airlines got excellent prices for the planes, in some cases more than they originally paid.
 

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