Ansett 767's sold

[rmm]

Dear Former Employee,

Following is an update on further progress related to the Ansett Administration

We are pleased to announce that an agreement to sell the six remaining Boeing 767-200
aircraft and four remaining CF6-80A engines was signed by various entities within the
Ansett Group on 13 September 2004.

Sale of Boeing 767 Aircraft and Engines
The total package price is approximately AUD$45 million, of which approximately
AUD$30 million relates to assets owned by Ansett Aviation Equipment Pty Ltd (“AAE”)
and the balance relates to assets owned by Ansett Australia Limited. The purchaser is
Aeroturbine, Inc of Miami, USA, with whom Ansett has previously concluded a number of
successful engine sales since entering administration. A cash Performance Bond
amounting to 10% of the Sales Price, and the Sales Price for the first two engines has
already been received into the Ansett bank account.

Key aspects of the deal are summarised below:
• Includes six 767-200 aircraft and four CF6-80A engines, delivered "as is" in
Melbourne;
• Ansett are providing up to 35,000 man hours and US$0.15m materials/services on
"use it or lose it" basis and shall be applied as directed by Aeroturbine;
• Delivery of the aircraft will occur progressively every sixty days over the next twelve
months, commencing on or about mid-November 2004;
• Delivery of the first two engines has already occurred, with the remaining two
engines due to settle at sixty day intervals;
• All aircraft will fly from Melbourne;
• It is likely the first five will ferry overseas after minimal return to service work. The
sixth aircraft may undergo a heavy check at the Ansett maintenance facility on a
“slow burn” basis over the next 12 months

The risks involved in this transaction include:

• Completion – this is partially offset by the Performance Bond which should at all
times equal 10% of the outstanding Sale Price for the package. Ansett has also
successfully concluded a number of prior transactions with Aeroturbine.
• Liens – Ansett and AAE are obliged to defend any lien claims that arise relating to the
period prior to delivery for six months following last Delivery. This may extend to
March 2006.
• Foreign exchange – the transaction is denominated in US dollars and receipts are to
be spread over the next 12 months.

This deal has progressed very swiftly following receipt of an indicative offer from
Aeroturbine on 27 July 2004. Following acceptance of the offer by Ansett, after
consultation with the creditors of AAE, Aeroturbine provided a cash deposit of
US$0.5 million and was granted a 30 day period in which to conduct inspections of the
aircraft, engines and related technical records. Their technical team identified a number
of issues that were subsequently addressed, leading to execution of the final Agreement
on 13 September 2004.

There remains a considerable amount of work to be completed prior to the departure of
the final aircraft (up to 35,000 man hours), however we would like to thank the various
Ansett personnel involved in progressing the deal to this stage.

[Buster Hyman]

30 day period in which to conduct inspections
That's not a lot of time to cover up the bolt holes from the engineers position!

[Wirraway]

Fri "The Australian"

Last of Ansett's Boeings fly overseas
Steve Creedy
September 17, 2004

ANSETT'S six remaining Boeing 767-200 aircraft are heading overseas after administrators KordaMentha closed a deal to sell the planes and several engines for more than $45 million.

The aircraft, which have been sitting in Melbourne since the airline collapsed in 2001, will be delivered to Miami-based sales and leasing firm Aeroturbine over the next 12 months.

The milestone deal comes on eve of the third anniversary of the administrators' appointment and means more than 90 per cent of Ansett's 133 aircraft have been sold.

It means former employees, who have so far received $547million in entitlements, are on track for a further $85 million in distributions over time.

Administrator Mark Korda said asset realisations this year had topped $100 million, including the 767s and a $29million property subdivision settled in July.

It is expected to realise about another $100 million.

"We're continuing to operate ahead of budget," Mr Korda said. "We thought we would take all of 2004 to repay the government its $67 million deferred dividend. We think we'll be ahead of schedule.

"We'll complete that in October and then the dividend payments will resume in 2005."

Mr Korda said the administrators were continuing to collect Ansett debts and were drawing up a contract with a preferred bidder for the airline's simulator business.

The administrators also retained a supply centre and maintenance base, as well as 12 BAe-146s and two Airbus A320s currently leased out. "Then really the balance of the assets is really consumables, rotables and engines," he said.

KordaMentha director Colin Egan said the sales came after three years of tough conditions in the used aircraft market and the administrators were happy with the deal.

He said interest in the aircraft had increased this year and there had been a number of parties who had conducted various levels of inspections on the 767s. "There's probably just a bit more buoyancy in the market," he said.

Mr Egan said one of the A320s was leased to an operator in France and the other to a carrier in Tunisia.

The BAe-146s included one 200 series, 10 300s and a 200QT cargo aircraft that was attracting local and overseas interest.

"Yet again the level of inquiry has increased and there have been a number of people inspecting the aircraft of late," he said. "I suppose the key thing for us is we've been able to sell aircraft in ones and twos to date but our preference would be try and get rid of a lot more in a single transaction.

"So, we're exploring that with a number of parties at the moment. But, all up, the 146 market is somewhat slower than we'd like."

Most of the 767s came in new to Ansett in the 1980s and were used by the airline as workhorses on its trunk routes until its demise. Mr Egan said former Ansett aircraft were now distributed as far afield as Russia, Albania and Tunisia.

===========================================

[gaunty]

So thats $45million less 35,000 man hours at $100 ph less accounting fees, yup the creditors might see ...............?:rolleyes:

[EPIRB]

$100 per hour? And the rest!

[Going Boeing]

It is likely the first five will ferry overseas after minimal return to service work.

This sounds like a snow job - The two QF B747-300's that were parked at Avalon for approx 14months were found to have significant corrosion to the pillars supporting the flight deck #1 windows and had to be replaced. The AN aircraft have been parked for three years in what is probably the worst climate for storage of aircraft and would have to have significant corrosion. If KM had any aviation nous then the aircraft would have been stored in a dry climate such as Woomera (no pun intended wrt the D & G moderator). I hope that a thorough service is completed on these aircraft prior to revenue operations.

GB