DALLAS, Jan. 7, 2025 /PRNewswire/ -- Southwest Airlines Co. (NYSE: LUV) and Babcock & Brown Aircraft Management (BBAM) announced the sale and leaseback of 36 Boeing 737-800 aircraft. The aircraft will be owned and leased to Southwest Airlines by Incline Aviation III, the third aviation fund managed by BBAM.

This monumental deal marks one of the largest sale and leaseback transactions in recent aviation history, solidifying the long-standing relationship between Southwest Airlines and BBAM. As a leading player in the aircraft leasing industry, BBAM has consistently demonstrated its expertise in providing innovative financing solutions to major airlines worldwide.

The Boeing 737-800 aircraft, known for its exceptional fuel efficiency and reliability, has been a staple of Southwest Airlines' fleet for many years. With this sale and leaseback agreement, the airline aims to optimize its fleet management while maintaining its operational efficiency. By transferring ownership of these aircraft to Incline Aviation III, Southwest Airlines can free up significant capital and allocate resources to drive business growth and expansion.

Incline Aviation III, the third aviation fund managed by BBAM, has successfully acquired a diverse portfolio of commercial aircraft. As the demand for air travel continues to soar, Incline Aviation III is well-positioned to capitalize on emerging opportunities in the aviation industry. With its impressive track record of investing in high-quality aircraft, the fund has established itself as a trusted partner for airlines seeking flexible financing solutions.

The sale and leaseback transaction between Southwest Airlines and BBAM is expected to have a positive impact on both parties. For Southwest Airlines, the deal provides an opportunity to reduce its asset base while maintaining control over its fleet. Meanwhile, BBAM can expand its portfolio of managed aircraft, further solidifying its position as a leading aircraft leasing company.

As the aviation industry continues to evolve, airlines and aircraft leasing companies must adapt to changing market conditions. This landmark deal between Southwest Airlines and BBAM serves as a testament to the innovative financing solutions available to airlines seeking to optimize their operations and drive growth. With its strong partnership and commitment to excellence, both Southwest Airlines and BBAM are poised to thrive in an increasingly competitive landscape.