Dublin-based Fly Leasing sells 33 planes for $985m

Fly Leasing, the listed aircraft finance group led by Aer Lingus chairman Colm Barrington, has sold 33 aircraft for $985 million (€867 million). The Dublin-based company said the sale represented a $35 million (€30.8 million) pretax gain over the net book value.

“The sale is a milestone in our ongoing fleet rejuvenation plan, producing approximately $425 million in unrestricted cash to invest in newer aircraft,” said Mr Barrington.

“The sale substantially reduces financial leverage, decreases exposure to some of our larger lessees and eliminates legacy accounting issues that have negatively impacted Fly’s GAAP results. Combined with the previously announced 2015 dispositions, the number of aircraft 10-plus years of age in Fly’s fleet will decrease from 61 to 33. We believe these factors will help Fly increase return on equity.”

Fly also said yesterday the annual management fee payable to its manager and servicer BBAM has been reduced by 47 per cent from $10.7 million a year to $5.7 million. The fee reduction will take effect from July 1st.