Willis Lease Finance closed its first transaction utilizing its new revolving credit lease engine financing product (the RCL). Scandinavian Airlines System (SAS) selected the RCL to finance CFM LEAP and Trent XWB engines, which power SAS’ A320neo and Airbus A350 aircraft, respectively.
Willis Lease created the RCL to address a lack of financing options for new technology engines despite the pricing of certain engine types approaching the pricing of a whole aircraft. The RCL marries certain attributes of a revolving loan with those of a traditional operating lease into one lease product with payment cash flows that mirror the way engines produce revenue for airlines.
“We are very excited to introduce the revolving credit lease and are thankful for the opportunity to grow our relationship with SAS,” Brian R. Hole, president of Willis Lease Finance, said. “The RCL creates a new market for engine financing and is proof once again that Willis Lease is the leading innovator in engine leasing, financing and management.”
“We are always looking for new ways to lower our costs and increase flexibility, and we believe financing these engines with Willis Lease’s new revolving credit lease helps us do both,” Niklas Hårdänge, vice president of fleet management for SAS, said. “We are pleased to be the launch customer for this product and appreciate Willis Lease’s continued efforts to develop new products and services that matter.”
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