Malaysia Airlines (MAS) has entered into an aircraft sales agreement with Bank of Utah for the buyback of 10 used Boeing 737-400 aircraft.
MAS currently leases and operates the 10 aircraft under separate aircraft lease agreements with AAR Aircraft Sales and Leasing, according to an earnings release issued today.
Bank of Utah is the owner trustee on the 737-400s, according to the release.
MAS says it has decided to buyback the leased aircraft from Bank of Utah due to "high maintenance costs to re-deliver these aircraft" in order to meet re-delivery conditions, coupled with its network requirement to "support domestic routes while waiting for new 737-800 deliveries from Boeing."
The aircraft are scheduled to be returned this year and will be used until the end 2014 before disposal, says the Malaysian carrier.
MAS says the $64 million capital expenditures will be depreciated until the end of 2014.
According to Flightglobal's Ascend online database, MAS operates 12 737-400s under leases with AAR Aircraft Sales and Leasing. A total of 10 aircraft were built between 1992 and 1993. Two more aircraft were manufactured in 1994 and 1997.