AAR says the sale of 10 Boeing 737-400s to Malaysia Airlines (MAS) is expected to generate $20 million in cash proceeds, resulting in a slight gain.
Earlier this week MAS agreed to buy back the aircraft for $64 million, or $6.4 million a piece after opting not to meet re-delivery conditions.
MAS currently leases and operates the 10 aircraft under separate aircraft lease agreements with AAR Aircraft Sales and Leasing. The aircraft have been on lease to MAS since they were acquired by AAR's joint venture joint venture in July 2007.
The aircraft are scheduled to be returned this year and will be used until the end 2014 before disposal.
AAR says the sale is consistent with the company's stated goal to reduce its investment in aircraft leasing. At its peak in 2007, it 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.