Viva taps first JOLCO to finance new A321neo¶
Mexican carrier turned to the Japanese debt financing option as it prioritises “liquidity preservation”.
Mexican ultra low-cost carrier Viva (formerly VivaAerobus) closed its first-ever Japanese Operating Lease with Call Option (JOLCO) debt financing for an Airbus A321neo delivered in May, says Mitsubishi UFJ Financial Group (MUFG), the sole structuring agent and lender of the transaction.
JOLCOs are unique in that they allow an airline to finance the full capital cost of an aircraft with debt.
Three i’s Capital was equity underwriter of the transaction.
The A321neo in question is likely registration XA-VXY (MSN 13014), which FlightRadar24 data shows was the only one delivered to Viva in May.
A Viva spokesperson declined to comment.
The JOLCO financing comes less than two months after Viva chief executive Juan Carlos Zuazua said the airline would “prioritise liquidity preservation” as it navigated high fuel prices and variable travel demand.
The airline had $722 million in available liquidity at the end of March after posting a $59 million operating loss in the first quarter.
Viva has previously financed aircraft through a variety of structures, including sale-and-leasebacks, term loans and French tax leases.
Ciprian Rodriguez, the fleet executive director at Viva, says in a statement that JOLCO financing “broadens the array of funding solutions available to support our fleet growth”.
Viva Aerobus operated 108 Airbus aircraft at the end of March, including 28 A320neos and 35 A321neos, its latest fleet plan shows. However, 26 A320neo-family aircraft were grounded during the period due to the ongoing Pratt & Whitney geared turbofan powdered metal issues.Subscribe to gain access to all newsAlready have a subscription?Log in.Choose your subscriptionConsidering a corporate subscription?Contact usto find out more.
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