Akasa Air Signs Contract With Griffin For Sale, Leaseback Of 5 Boeing 737 Max Aircraft

Akasa Air has signed a contract with Irish leasing company Griffin Global Asset Management for sale and leaseback of five Boeing 737 Max aircraft, a statement said on Thursday.

Under sale and leaseback model, the airline sells its planes to a leasing company and then leases them back. This frees up the cash that the airline has spent in buying the aircraft.

Akasa Air had signed a deal with Boeing to purchase 72 Max aircraft on November 26, 2021, approximately three months after the Directorate General of Civil Aviation gave the green light to Max planes. Akasa Air is scheduled to receive its first Max aircraft this month and is planning to launch its commercial flight operations in July.

A statement by Griffin Global Asset Management said it "is pleased to announce the mandate for purchase and leaseback of five Boeing 737-8 aircraft with Akasa Air, a new airline based in India."  

The airline, which is backed by ace investor Rakesh Jhunjhunwala and aviation veterans Vinay Dube and Aditya Ghosh, received the no-objection certificate from the Ministry of Civil Aviation in August 2021 to launch commercial flight operations.

Commenting on the contract with Griffin, Dube, Founder, Managing Director and CEO, Akasa Air, said, “We are pleased to have Griffin as our partners in growth as we embark on our aviation journey. The high degree of confidence and endorsement from the Griffin team is a testimony to Akasa Air's robust and sustainable future.”