Tui Group has secured the sale and leaseback of five new Boeing 737 Max aircraft for $266 million.

The deal was agreed with Singapore-based leasing firm BOC Aviation.

All 737 Max aircraft remain grounded following two fatal crashes in Indonesia and Ethiopia in October 2018 and March 2019.

The aircraft involved in the leaseback deal are expected to be delivered in 2021.

The first 737 Max is expected for delivery in the first quarter with the remaining four aircraft due ahead of the summer 2021 season. 

Tui Group said: “In line with our asset-right strategy as outlined in our full year 2019 year-end results, the sale and leaseback agreement with BOC Aviation will finance five new Boeing 737 MAX-8 aircraft as part of our planned re-fleeting programme. 

We expect further sale and leaseback financing on our future deliveries beyond full year 2021, in line with our newly agreed deferred re-fleeting programme with Boeing.”

A confidential compensation agreement with the US manufacturer was reached in June to offset the grounding of the 737 Max, including a revised delivery schedule for 61 aircraft on order as part of plans to cut the size of the travel group’s five airlines in the wake of the Covid-19 crisis.