AAR Announces the Sale of 10 737-400 Aircraft to MAS from its Joint Venture Portfolio Company continues to make progress on its stated goal to reduce investment in leased aircraft
WOOD DALE, Ill., Nov. 29, 2012 /PRNewswire/ -- 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.
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.
AAR is a leading provider of value-added products and services to the worldwide aerospace and government and defense industries. With facilities and sales locations around the world, AAR uses its close-to-the-customer business model to serve aviation and government/defense customers through two operating segments: Aviation Services and Technology Products. More information can be found at www.aarcorp.com.
This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on beliefs of Company management, as well as assumptions and estimates based on information currently available to the Company, and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or those anticipated, including those factors discussed under Item 1A, entitled "Risk Factors", included in the Company's Form 10-K for the fiscal year ended May 31, 2012. Should one or more of these risks or uncertainties materialize adversely, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described. These events and uncertainties are difficult or impossible to predict accurately and many are beyond the Company's control. The Company assumes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. For additional information, see the comments included in AAR's filings with the Securities and Exchange Commission.