Canada’s Porter Airlines inks first Q400 sale and lease-backs

Porter Airlines (PD, Toronto City Centre) has diversified its fleet ownership model following the signing of sale/lease-back agreements with Aergo Capital covering five Dash 8-400s. The move marks the first time the Canadian regional carrier has ventured into leases given until now, it has owned all of its twenty-nine De Havilland Aircraft of Canada turboprops.

“The ability to capitalize a portion of Porter’s Dash 8 fleet demonstrates that we have additional financing options to strengthen our balance sheet,” Jeffrey Brown, Porter’s executive vice president and CFO, said. “We intend to use these funds as supplementary working capital as the airline industry continues its pandemic recovery.”

The aircraft involved in the transaction are msn 4130, 4134, 4138, 4140, and 4193. They are the oldest in Porter’s fleet and range from 15.74 years to 14.3 years of age, the ch-aviation fleets advanced module shows.

Porter’s operations currently focus on its Toronto City Centre hub from where it offers connections to various towns and cities spread across the eastern Canadian and US seaboards. Assuming there have been no changes to its original plans, Porter will induct its first of thirty E195-E2s due from Embraer during the second semester of the year.