MIAMI – Icelandair (FI) has announced a sale, leaseback agreement for two of its Boeing 767-300ERs to Titan Aircraft Investments.
Titan Aircraft Investments is a joint venture between Bain Capital Credit and Titan Aircraft Holdings, a subsidiary of Atlas Air. Titan Aircraft Holdings is an experienced aircraft leasing company, has a diverse portfolio of aircraft, including Boeing 777s, 767s and 737s.
Titan Aircraft Investments will now have three aircraft in its portfolio with an existing Boeing 777 and the addition of the 767s. The aircraft will be sold to Titan Aircraft Investments and leased back to FI as converted freighters, adding to FI’s growing fleet of freighter aircraft.
Additionally, FI recently restarted flight operations using the recently ungrounded Boeing 737 MAX 8, creating room for the airline to retire older aircraft from their passenger operations.
The sale and leaseback deal will allow FI to take advantage of their capital and help the airline maintain a healthy cash flow during these difficult times.
Icelandair’s Cargo Focus
Icelandair maintains a small cargo fleet, including two Boeing 757-200F aircraft. The two additions will complement the growing fleet.
Cargo operations have become a vital part of the aviation industry during the time of COVID-19, especially for airlines that cannot operate domestically. The airline will be looking to expand its cargo operations, utilizing the Boeing 767F’s 50% larger capacity than the Boeing 757F.
Bogi Nils Bogason said, “With continued positive outlook for cargo operations post COVID, I am confident that the 767-300ER freighters will allow us to maximize new opportunities in our markets.”
He continued, “Our aim is to increase the capacity in our markets, as well as strengthen Iceland as a hub for cargo, in a similar way as our passenger hub that provides attractive connections between continents.”
Michael T. Steen, President and Chief Executive Officer of Titan Aviation Holdings, stated, “The 767-300ER is a very attractive medium-sized freighter and we are excited to manage these two aircraft on behalf of the joint venture.
“We currently own 21 767-300ER freighters, which provide us with extensive experience in this aircraft type.”
Featured Photo: Kochan Kleps/Airways