In February 1996, Trans World Airlines (TWA) agreed to acquire 20 Boeing 757-200s, in a deal valued

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In February 1996, Trans World Airlines (TWA) agreed to acquire 20 Boeing 757-200s, in a deal valued at about $1 billion. Of the 20 planes, 10 would be purchased directly from Boeing. However, the remaining 10 were to be obtained through International Lease Finance Corp., a Century City, California, firm, on a 10-year lease.

Why would International Lease Finance Corp. be willing to buy planes from Boeing and then lease them to TWA? How is this different from just loaning money to TWA to buy the planes?

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Fundamentals Of Corporate Finance

ISBN: 9780072553079

6th Edition

Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan

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