BAE Systems to sell regional fleet and asset management business

The sale, which is expected to close in the third quarter of 2011, is for a cash consideration of $187 million, subject to certain post-completion adjustments. Completion is conditional, amongst other things upon regulatory approval.
 
The business, known as BAE Systems Asset Management, is the world’s second largest regional jet lessor by fleet value and the tenth largest aircraft lessor by fleet size. It has 16 lease customers in 11 countries. The business is responsible for the management of 151 commercial aircraft owned by BAE Systems, which are included in the sale, plus the management of third party owned commercial aircraft on behalf of airlines and investors.
 
The support and engineering activities of BAE Systems Regional Aircraft are not included in this sale.
 
Alan Fraser, Managing Director of BAE Systems Regional Aircraft, said today:  “We are pleased to confirm the sale of BAE Systems’ regional aircraft fleet and asset management business. We believe that this business will have a promising future and that we have found a buyer with the resources and expertise to support the growth of this activity.
 
BAE Systems Regional Aircraft support and engineering businesses will continue to provide the full range of support to the new owner, including continuing airworthiness and engineering services. We are looking forward to continuing our close working relationship with the Asset Management business under its new ownership.”