American Airlines signs sale and lease deal for six aircraft

Airline Industry Information, Nov 11, 2002

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American Airlines has formed a sale and lease-back deal for six aircraft with Arkia Israel Airlines, a subsidiary of Israel's Knafaim-Arkia Holdings.

Under the agreement, Arkia will purchase one Boeing 767-300ER from American Airlines and lease it back to the carrier for 13 years. The Israeli company will also buy five McDonnell Douglas MD-82 aircraft and lease them back to American Airlines for 12 years.

The US carrier has an option to extend the leasing period for three additional terms of one to five years each, and can also buy the aircraft back at various intervals during the leasing period.

Arkia paid a total of USD91.4m for the six aircraft and expects to receive USD138.2m from American Airlines over the contracted leasing period.

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