Peter La Franchi/CANBERRA
Australian aircraft lessor Ansett Worldwide Aviation Services (AWAS) has been bought by Morgan Stanley Dean Witter (MSDW) Aircraft Holdings, accelerating moves by former joint-owner News Corporation to leave the aviation sector after the recent sale of its stake in Ansett Australia to Air New Zealand.
News Corp is also thought to be close to finalising the sale of its holding in Ansett New Zealand as it focuses on its media activities.
The AWAS deal, the value of which was not disclosed, also involves the sale of the TNT Post Group's 50% stake in the lessor, which it has been looking to shed since the takeover of TNT in 1996.
The purchase consolidates MSDW's position as the world's third largest institutional owner of aircraft, with a 160-strong combined fleet. AWAS, which will continue to operate independently of MSDW Aircraft Holdings, owns a 106-aircraft fleet dominated by Boeing 737-300s, 757-200s and MD-83s and valued at $4 billion, with six more aircraft on order from Seattle. Contracts are held with 48 customers - including Air France and American Airlines - in 28 different countries.
MSDW Aircraft Holdings chief Scott Peterson says the AWAS purchase is part of "the expansion of our Australian-based activities". He describes the lessor's fleet as "an excellent asset base". The takeover should be finalised by April.
AWAS has suffered sluggish profits, but blames this on "having shareholders who deemed the activity to not be their core business". Qantas says it opted not to bid for AWAS after carrying out a fleet valuation.
News Corp, meanwhile, says it is close to severing its last link with the aviation industry through the sale of domestic operator Ansett New Zealand, with "a couple of interested parties" in discussions. Auckland-based Clavell Capital is thought to lead the bidding.
Source: Flight International
