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Why does this airline want to enter into a sale-and-leaseback transaction? Why switch from being the owner of the aircraft to just the operator? What
- Why does this airline want to enter into a sale-and-leaseback transaction? Why switch from being the owner of the aircraft to just the operator?
- What does WNG bring to the deal other than money to buy the aircraft? How does the deal fit into WNGs business model?
- In what way is leasing similar to borrowing to buy an asset? How is it different?
- What are the cash flows for WNG? Using a 20% required rate of return (1.67% per month), what do you get as the NPV of the deal?
- What are the major drivers of value for the sale and leaseback? Which assumptions are you most worried about and why? Should WNG go forward with the transaction or not?
- Now value the lease from the airlines perspective. Are the cash flows for the airline the same as for WNG? What do you get as the NPV for the lessee?
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Algorithmic Finance A Companion To Data Science
Authors: Christopher Hian-ann Ting
1st Edition
9811238308, 978-9811238307
