AAR Announces the Sale of 10 737-400 Aircraft to MAS from its JV Portfolio
- Company continues to make progress on its stated goal to reduce investment in leased aircraft
AAR (NYSE: AIR) and its joint venture partner have entered into an agreement to sell 10 Boeing 737-400 aircraft to Malaysian Airline System Berhad (MAS). The aircraft have been on lease to MAS since they were acquired by the joint venture in July 2007.
The sale is consistent with the Company’s stated goal to reduce its investment in aircraft leasing. At its peak in 2007, the Company held 31 aircraft in joint ventures and 11 aircraft in its wholly-owned portfolio. Upon completing the sale to MAS, AAR’s portfolio will include six aircraft held in joint ventures and two aircraft that are wholly-owned.
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While AAR has reduced its portfolio of leased aircraft, it will remain active in the aircraft sales and re-marketing business where the Company has an established market presence and a successful track record.
The transaction is expected to be completed during AAR’s 2013 fiscal third quarter with net cash proceeds of approximately $20 million, and will record a slight gain. Due to joint venture accounting, there will be no impact on sales.
Source : AAR Corporation (NYSE: AIR)