Avolon agrees sale-and-leaseback of seven 737-8200s with Akasa Air

Avolon has announced a sale-and-leaseback agreement covering up to seven Boeing 737-8200 aircraft operated by Akasa Air. Under the arrangement, the Indian carrier will sell the jets to the leasing company and then lease them back, a structure that allows Akasa Air to release capital tied up in the aircraft while continuing to fly them without operational disruption.

The Boeing 737-8200 is described as the highest-density variant of the 737 MAX 8, certified for up to 210 passengers, though Akasa Air configures its aircraft with 197 seats in a single-class layout. According to the report, Akasa Air became the first operator of this variant in Asia in 2023 and currently flies 17 of the type, all in the 197-seat configuration.

Avolon has been a long-standing partner of Akasa Air, supplying 737-family aircraft since the airline's launch. The lessor reportedly delivered five standard 737 MAX 8 aircraft to the carrier between December 2022 and January 2023, shortly after Akasa Air began operations.

Akasa Air, while smaller than India's largest carriers, IndiGo and the Air India group, has grown into the third-largest airline in the Indian domestic market, according to the report. The 737-8200's per-seat economics are said to support the airline's strategy of capturing growing low-cost travel demand in India. Financial terms of the sale-and-leaseback transaction were not disclosed.