Willis Lease Finance Corporation (NASDAQ: WLFC) today announced it has 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’s 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. The RCL provides more liquidity, including for future maintenance, and more flexibility for airlines interested in long-term ownership of their engine assets.
“We are very excited to introduce the revolving credit lease and are thankful for the opportunity to grow our relationship with SAS,” said Brian R. Hole, President. “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,” said Niklas Hårdänge, VP Fleet Management for SAS. “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.”