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courtesy hawaiian airlines
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Hawaiian Airlines said Tuesday it will borrow $444.5 million to pay for six new Airbus A330 aircraft due to be delivered over the next 18 months.
The carrier will raise the money by selling so-called Enhanced Equipment Trust Certificates to large investment firms. The certificates, which are a loan backed by the airplanes, will pay a fixed interest rate of either 3.9 percent or 4.95 percent depending on the class of certificate.
Hawaiian, which is making this type of offering for the first time, will own the aircraft when the notes mature. The last note matures in 2026.
Colorado-based airline consultant Mike Boyd said the certificates will make a good investment.
"If you can buy something and get a 4 percent return from your investment, that’s huge, and the risk is very low," Boyd said. "There’s always risk with an airline, but an A330 — especially a new one like they’re doing — is a slam dunk. If anything happened, they can peddle that airplane tomorrow."