Ansett Aircraft Value Plummets
Couldn't miss this one in the Financial Review
Headline Ansett aircraft value plummets
Date April 19th, 2004
Source Australian Financial Review
Ansett aircraft value plummets
Ansett Airlines creditors are stuck with 28 aircraft the administrators have had trouble selling after revising estimates of the planes' worth from more than $600 million when the airline collapsed in 2001 to just $63 million today.
Ansett administrator Mark Korda has distributed $547.7 million to former Ansett staff who were estimated to be owed $766.4 million when the airline collapsed.
Ansett creditors have since reaped the benefits from the sale of 30 of the airline's 55 owned aircraft.
But Mr Korda said yesterday the value of the remaining fleet of aircraft including Boeing 767s and BAe 146s, along with Saab 340As on lease to Regional Express was well below previous valuations.
The aircraft fleet is the largest remaining asset.
The value of the aircraft has been revised downward from more than $600 million, according to an independent expert valuation, firstly to $300 million, then to $250 million and again to $150 million since 2001.
However, Mr Korda's firm KordaMentha sold four Fokker F50s in Sweden for $7 million last week, and Mr Korda said two Airbus A320 aircraft would fly to Europe next week for leasing in the Middle East, Africa or Europe. ``Once they are leased you can sell them,'' he said.
``The state of the global aviation market, whilst now showing some signs of improvement, continues to be depressed when compared to pre-September 2001 levels, and the rise in the value of the Australian dollar against the US dollar has further reduced values,'' according to a recent creditors report.
``The current value of the aircraft is well below previous valuations, due to the state of the global aviation market.''
The remaining aircraft, which have been warehoused in Victoria's Essenden and Tullamarine airports, are among 2000 similar planes for sale on the world aviation market.
Adding to the lack of buyer interest is their old age relative to other stock on sale. The Ansett aircraft were older than most of the available stock, Mr Korda said. ``It's difficult but not impossible to sell them.''
The administrators are seeking to recover a further $102 million in unrealised asset sales plus the $63 million from airline sales.
KordaMentha estimates Ansett employees will receive a further $85.1 million.
Asset sales were $30 million ahead of schedule, Mr Korda said.