The aircraft will transfer individually to the new owner, with all transfers expected to be completed by year end.
DUBLIN – FLY Leasing Limited, a global leader in aircraft leasing, announced that it has contracted to sell 12 older aircraft from its portfolio for $240 million. The sale is anticipated to produce a $12 million pre-tax gain. In connection with the transaction, FLY anticipates recording $3 million in non-cash charges relating to debt modification and extinguishment costs. The aircraft will transfer individually to the new owner, with all transfers expected to be completed by year end. The gain and the associated expenses will be recognized on a pro rata basis at the time of each transfer. The sale is subject to customary closing conditions.
“FLY is moving decisively to monetize older aircraft and to reinvest the capital into younger aircraft to drive higher ROE,” said Colm Barrington, CEO of FLY. “In total, this year we have sold or contracted to sell 57 aircraft with an average of 13 years.”
“This bold action reflects our view that this is the right time to rotate out of mid-life and older aircraft and to invest in younger models,” added Barrington. “We are improving every measurable fleet metric to drive higher ROE in the quarters ahead. The 12 aircraft in the transaction announced today have an average age of 13 years and the sales will produce approximately $80 million in cash. This is on top of the $35 million gain and $425 million in cash to be generated by the portfolio sale of 33 aircraft previously announced in June.”
Separately, FLY completed a sale of a 22-year-old B747-400 aircraft earlier this month.
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
