Colgan Air closes Q400 S&LBs for $41m

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Colgan Air has completed the sale-leaseback transaction of two Bombardier Q400 aircraft with Siemens Financial Services.

The $41.6 million proceeds of the sale of two aircraft were used to pay off $35.8 million of indebtedness owed to Export Development Canada and to increase Colgan's working capital.

The lease agreement covers a period of 10 years to June 2021 and is guaranteed by parent company Pinnacle Airlines Corp.

Colgan Air operates 29 Q400s with PW150A engines which were delivered bwteen January 2009 and April 2011.