Mortgaging LHR slots

Apologies if this is old news - am poolside in BGI on dodgy wifi and an iPhone - http://news.sky.com/story/1596247/virgi ... -250m-deal

Interesting story, though I don't understand the relationship between the securisation of the slots at LHR and the LGW entity. I'm also curious how they value the LHR slots.

Well in a nutshell they are doing this to raise funds for future aircraft deliveries.
VS currently lease the vast majority of its fleet and wants to move away from this model. I suspect that VS must think the value of the slots is going to increase, especially if David Cameron doesn't give the green light for the third runway at LHR.

VS are looking to raise around 250 million for this transaction although it could be more.
What I want to know is are they buying more 787's ? or will we finally find out what's happening with the A380 only time will tell.

Well in a nutshell they are doing this to raise funds for future aircraft deliveries.
VS currently lease the vast majority of its fleet and wants to move away from this model. I suspect that VS must think the value of the slots is going to increase, especially if David Cameron doesn't give the green light for the third runway at LHR.

VS are looking to raise around 250 million for this transaction although it could be more.
What I want to know is are they buying more 787's ? or will we finally find out what's happening with the A380 only time will tell.

Its the latest variation on "Bowie Bonds" , which i imagine are more popular than one may think. The worry is, IF, they pay a increased yield where does that come from?