ALC earns $1.9m on A320 sale to Commonwealth Bank

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Air Lease Corporation (ALC) recorded a gain of $1.9 million from the sale of an Airbus A320-200 to Commonwealth Bank of Australia, marking the lessor's first aircraft sale.

According to an annual regulatory filing, the Los-Angeles based lessor entered into an agreement in the fourth quarter of 2012 with the bank and one of its subsidiaries "at terms no more favourable than would be to an unrelated third party."

ALC also entered a servicing agreement with the bank and "may earn up to $980,000 in fees" to manage the A320 lease.

The Commonwealth Bank of Australia is an investor in the lessor with 6.25 million shares. It also made a $125 million initial investment into ALC when it started operations in 2010.

During an earnings call on 28 February, executives said that ALC will continue to dispose of aircraft, but will only sell a unit if the gains are greater than the potential lease payment stream.