Airplanes Purchased By Malaysian Airline System Berhad (MAS) From Company's Joint Venture Portfolio
AAR and its joint venture partner have completed the sale of 10 Boeing 737-400 aircraft to Malaysian Airline System Berhad (MAS), which the Company announced in November 2012. The sale is consistent with the Company's stated goal to reduce its investment in aircraft leasing. AAR's portfolio now includes four aircraft held in joint ventures and two aircraft that are wholly-owned. At its peak in 2007, the Company held a total of 42 aircraft in its joint venture and wholly-owned portfolios.
The transaction closed during the third quarter and will generate net cash proceeds of approximately $20 million and a modest recorded gain during the Company's current fiscal year 2013. Due to joint venture accounting, there will be no impact on reported sales.
The Company remains active in the aircraft sales, re-marketing and modification business, where AAR has an established market presence and augments the sale of aircraft with high-value parts, maintenance and modification services from its broad range of capabilities.
AAR is a provider of value-added products and services to the worldwide aerospace and government and defense industries.