Air Canada sold an airplane and used the proceeds to improve its financial position.It then leased the airplane back in order to continue the use of the asset.This is an example of:

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In a sale and leaseback arrangement, the seller (in this case, Air Canada) sells an asset (the airplane) and then leases it back from the buyer. This allows the seller to generate cash from the sale while still retaining use of the asset. This is a common strategy for companies looking to improve their liquidity and financial position. This transaction does not involve leverage, as the lease payments are not directly tied to the value of the asset. It is also possible that this could be an operating lease, depending on the specific terms of the lease agreement.

Air Canada Sold an Airplane and Used the Proceeds to Improve