Finnair Secures Ownership of Six A321-200s from BOC Aviation in Strategic Move

Finnair has successfully completed the acquisition of six Airbus A321-200 aircraft, which it was previously leasing from BOC Aviation, a Singapore-based lessor. The transaction, valued at over EUR 200 million (USD 219 million), is set to positively impact Finnair’s financials, with an expected annual improvement of over EUR 20 million (USD 2.19 million) in profit before tax and cash flow.

This strategic purchase was made possible thanks to the enhanced balance sheet and cash reserves Finnair achieved following a rights issue last month, which injected approximately EUR 558.2 million (USD 611.5 million) into the airline.

According to ch-aviation and wikipedia, Finnair’s fleet comprises 80 aircraft, of which 37 are owned. With this latest acquisition, the airline now owns seven out of its fifteen A321-200s.

In addition to the aircraft purchase, Finnair has also made significant progress in reducing its debt. The airline repaid an additional EUR 120 million (USD 131.4 million) of its EUR 600 million (USD 657.2 million) pension premium loan in December, surpassing the initially planned EUR 100 million (USD 109.5 million) installment. Including interest, the total repayment amounted to approximately EUR 230 million (USD 252 million), leaving a remaining loan balance of EUR 280 million (USD 307 million), which is scheduled for full repayment by the end of May 2025.

Finnair’s decision to acquire these aircraft and reduce its debt aligns with its revised financial targets announced in October. The airline aims to maintain a cash-to-sales ratio of around 30%. Following the aircraft purchases and loan repayment, Finnair’s cash-to-sales ratio remains close to this target, reinforcing its financial stability and long-term operational goals.

This move by Finnair demonstrates a strategic approach to fleet management and financial health, positioning the airline for sustainable growth and operational efficiency.