Virgin Atlantic will most likely turn to the sale and leaseback market to source financing for the majority of its 10 Boeing 787-9 aircraft, market sources indicate.
The carrier issued a request for proposals (RFP) this month for various financing products; however, the sale and leaseback market is showing the most appetite for the 787s at the moment, according to a source.
A bank source echoes this sentiment, adding: "The 787 is strong in the leasing community, so I can see that market absorbing a nice chunk of Virgin's aircraft."
Virgin's deliveries are expected between September 2014 and April 2016.
UK-based MDT is arranging the financing as well as pre-delivery payments, say sources.
Solid lessor appetite for the longhaul aircraft prompted Air India to issue an RFP for sale and leaseback financing for seven Boeing 787s in January. The carrier has narrowed the bidding process down to three parties, including AerCap and Fly Leasing, say financiers. The other unidentified bidder is also believed to be an operating lessor.
A decision on Air India's 787 RFP is due this month.
Neither MDT nor Virgin Atlantic was available for comment.