Frontier Airlines Holdings, Inc. today announced that it has entered into a Letter of Intent with VTB Leasing to sell six of Frontier's 47 Airbus A319 aircraft to VTB Leasing for onward lease to Rossiya Airlines. This agreement amends an earlier agreement where VTB Leasing was to purchase two A319 and two A318 aircraft. Under the revised agreement, VTB Leasing will not take delivery of the originally agreed upon two A318 aircraft to be delivered in August and will instead purchase an additional six A319 aircraft in August.
Frontier Airlines has also reached an agreement on other sale leaseback transactions that further supplement its liquidity position. In total, Frontier will realize approximately $80 million in net proceeds from these transactions.
"This is another major step forward in strengthening our cash position as we manage through our reorganization," said Sean Menke, Frontier President and Chief Executive Officer. These aircraft transactions, combined with the financing announced last week and other liquidity initiatives the Company has realized since early July, represent substantial progress in our reorganization efforts."
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