HANOVER: TUI Group has confirmed the signing of a sale and leaseback (SLB) agreement with BOC Aviation Ltd for five new Boeing 737 MAX-8 aircraft for the aggregate sum of $226 million.

The first aircraft is expected for delivery in the first quarter of FY21 with the remaining four aircraft expected to be delivered ahead of the Summer 2021 season.

“In line with our asset-right strategy as outlined in our FY19 year-end results, the SLB agreement with BOC Aviation Ltd will finance five new Boeing 737 MAX-8 aircraft as part of our planned re-fleeting programme,” a news release said.

“We expect the lease agreement with BOC Aviation Ltd, on standard commercial terms, to create a total lifetime lease obligation of around €223m to commence by the end of FY21.  We expect further SLB financing on our future deliveries beyond FY21, in line with our newly agreed deferred re-fleeting programme with Boeing”.