FLY's redeliveries up by eight due to customer woes

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

FLY Leasing had eight unscheduled aircraft redeliveries this year due to financial woes at some of its clients, in addition to its 22 anticipated lease terminations.

"We had eight unscheduled redeliveries, which are due to bankruptcies or early termination of leases because of financial problems of some of our clients," says Fly Leasing's chief financial officer Gary Dales on a third quarter earnings call.

Of those eight aircraft, three units have signed up to letters of intents and another two are scheduled for placement in the fourth quarter, says Dales.

All 22 scheduled lease terminated have been placed, says Dales.

In 2013, FLY Leasing has 18 aircraft coming off scheduled leases. Eight of those aircraft leases have signed extensions and ten units are in the marketplace for remarketing, says Dales. Of those ten units, six are due in the first half of 2013 and four are expected in the second half of the year.

Dales says three of the ten units "are going to be sold", and two aircraft "will be extended" and the the other five will be remarketed to new customers.

BBAM president and chief executive officer, Steven Zissis, says the lessor is in the process of taking back one aircraft at Swiss carrier Hello, which ceased operations in October.