Ann: Engines Sale, page-3

By my reckoning, this sale represents 6 of the E190's now fully converted back to cash ($83m approx) with a 100% mark up on the initial costs. Yes, the current wet leases are a concern when they come out of lease but this is where the strength of the Parts business will come to the fore, as this current announcement proves.

Lets face it, the current fleet of Fokkers (38 of) are almost at an end ( I think Scott said by 2028 to 30) and that's a good thing - (1) better we have just the E190's as one type of aircraft makes training, staff requirements, maintenance and provisioning that much easier (they are following the Herb Kellaher of South Western Airlines philosophy of standardize everything) and (2) they will then cannibalize the Fokker fleet for parts so that over time I'd suggest we might get a few bucks in the door (the sum of the parts is far greater than the whole as any car wrecking yard will testify.

Plus, this new deal with Beautech Power Systems will give us entree to the world of selling second hand E190 engines which will bring in greater than the book value of the E190 planes + there's money in selling the remainder of the 3,000 plus parts which make up the E190.

So, I'm not concerned about the planes themselves - they will be used on the FIFO's (and that's where we make our gravy) and charters when they come off wet lease and then cannibalized or placed on dry lease where I believe some 6 are already.

The big thing is for us to get the debt monkey off our back & the $62m from this recently announced deal will help considerably.

But I'm with you Miningnut, I don't understand why this doesn't affect the recently announced EBIT and NPAT updates (or downgrades as it turned out).
Unless they were counting the profits from this deal into those figures before it was cemented (a bit risky) which means the actual revenue and profits form normal operations were much worse than expected.

I'm presuming that the cash from this deal won't be banked prior to June 30, so how con this reduce the net debt. at that date.
Sure, I can see how the stock will go down (by the cost quotient which I figure will be around $30m) but presumably it will be replaced by a debtor tor the amount of $60m or thereabouts. Maybe they own Picco (finance company) which means the payment amount has been directly deducted off our indebtedness.

I'm sure Scott and crew deliberately make the tracking of the E190's as difficult as herding feral cats for a reason.
Anyhow not too long to find out the answers.