Flight International online news 08:30GMT:Morgan Stanley is selling its aircraft leasing business AWAS because it wants to focus on its core business.
The investment bank says the aircraft leasing market has experienced an upturn over the past 12 months in terms of lease rates and market demand. It says, as off the end of Q2, AWAS had no aircraft on the ground with all of the 155 aircraft in the portfolio either leased or committed to a lease transaction.
The company estimates that in the third quarter it will write down the value of AWAS and make an after tax non-cash accounting charge of around $1 billion in preparation for AWAS’ sale which it hopes to complete in mid-2006.
Morgan Stanley bought AWAS in 2000 from TNT Post Group and New Corporation. The aircraft leasing company at that time was Ansett Worldwide Aviation Services and headquartered in Australia. But the headquarters was relocated in 2003 to Seattle.
AWAS’ portfolio of 155 aircraft includes Airbus A300s, A320s, A330s and A340s, Boeing 737s, 747s, 767s, 777s and MD-80s and Fokker 70s.
LEITHEN FRANCIS / SINGAPORE
Source: Flight International
