- Advertisement -

British Airways Mortgages 48 Aircraft for $750 Million amid COVID-19 Crisis

0

- Advertisement -

 

British Airways has mortgaged 48 aircraft to raise $750m of new finance. This latest development was revealed in a filing made yesterday with Companies House.

British Airways Mortgages 48 Aircraft for  $750 Million

According to British Airways’ filings yesterday, the airline mortgaged a total of 48 aircraft — 40 short-haul and 8 long-haul aircraft — with Citibank Global Markets Inc acting as a security trustee.

All of the aircraft were said to be under 20 years old, with the two oldest being delivered in December 2000. The youngest aircraft is just four years old, we could tell that some of them, will be approaching retirement in the coming years. More recently delivered aircraft are likely to be subject to other financing agreements.

In total the following aircraft have been mortgaged:

2x Airbus A318-100s; (It was widely thought one of these had been sold to Titan Airways!)

4x Airbus A319-100s;

24x Airbus A320-200s;

- Advertisement -

10x Airbus A321-200s;

5x Boeing 777-200ERs;

2x Boeing 777-300ERs;

1X Boeing 787-9.

As at press time, Neither BA nor its parent company IAG appears to have made any official comment on this but we could also recall that since the global outbreak of COVID-19 pandemic, BA has secured additional finance by extending an existing $1.3 billion revolving credit facility

The London air travel also reports that BA’s parent company IAG had previously secured £300m through the UK government’s COVID Corporate Financing Facility. Iberia and Vueling have raised €750m and €260m through syndicated loans guaranteed by Instituto de Crédito Oficial in Spain.

BA is not only focusing on the possibility of securing more support from the UK government; it’s currently focusing on “self-help” measures such as staff redundancies and changes to employee terms and conditions.

 

- Advertisement -

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.