IAG comfortable with Iberia financing requirement

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Iberia parent IAG says the Spanish carrier will have a limited capital expenditure requirement this year as it will need financing for two new Airbus A320 deliveries.

Flightglobal’s Ascend Online database shows the two aircraft are scheduled to deliver in August and November 2014.

The group says Iberia’s liquidity was strong at December 2013 with €711 million ($979 million) of cash and a general purpose facility secured on the shareholding in Amadeus.

This year, Iberia will also take delivery of two A330-300s from BOC Aviation under a sale-and-leaseback agreement.

However, IAG adds that there is a refinancing risk in 2014 as there are 16 A320s under operating leases, which are required long term in the fleet. “Iberia expects to exercise a December 2014 fixed-price purchase option on these aircraft at a cost of around $460 million,” says the group.

Vueling is due to receive a new A320 next month from AWAS.

British Airways will receive 16 aircraft this year, of which two Boeing 777-300ERs will be leased with operating lessor ALC. The four 787-8s will financed with the proceeds from last year’s $971 million enhanced equipment trust certificates along with three A320 deliveries, leaving a financing requirement for two A320s, one 777-300ER and four A380s.

In a conference call with analysts, IAG chief executive Willie Walsh said financing on this year’s A380 is already committed.