Different options on A320s, GMT Global

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

GMT Global Republic Aviation says it has different options on the future of its Airbus A320-200 fleet with V2500-A1 engines.

In an interview with CAO, GMT Global's CFO Ian Massey says the aircraft have a lease attached for another two years.

"This creates options for us," he comments.

Massey says one option would be to extend the leases on these aircraft. "We think the current lessee may keep the aircraft, or we could find another lessee. The world will be a different place by 2011," he says.

Another option could be a cargo conversion. "By then [2011] we may have an interest in converting the aircraft into freighters because the book values should sustain such a proposition," he states.

"We have talked to Airbus about the freighter conversion programme and we know Aercap well and know their views on the freighter," he adds.

AerCap is the launch customer of the A320 passenger to freighter aircraft programme and has -A1 powered aircraft as probable candidates, CAO understands.

GMT Global's recent four Airbus A320-200s acquisition from Orix Aviation are 1991/92 vintage aircraft and would perfectly fit for the programme.

A third option is part out, explains Massey. "If needed we can tear down the aircraft. We know there is interest in used parts for the market," he says.

Massey says the four Airbus A320-200s acquisition was a significant achievement in today's environment.

"In a difficult financing market the -A1 engined A320 is not everyone's favourite. However, people may have the wrong perception of this engine and, as a result, values are not as strong as other types, but that creates opportunity for us as we take a longer-term view" he comments.

"Overall we are very pleased with this transaction," he adds.