topend3
13th Jun 2003, 15:29
Skywest cuts a plane deal
By Geoffrey Thomas
THE resurgence of Skywest Airlines gained momentum yesterday when the airline was able to reach agreement with the Commonwealth Bank of Australia and the Ansett administrator on the refinancing of its fleet of five Fokker 50s.
Industry observers said CBA had little option but to agree to new terms because of the worldwide glut of aircraft, with more than 2000 grounded. But in a significant windfall for Skywest, managing director Scott Henderson was able to secure a much more equitable financing arrangement for the airline.
Skywest will buy the aircraft for $9.4 million, comprising a $6.5 million loan from the CBA, a $1.3 million loan from the Ansett administrators and a cash payment of $1.6 million.
But the new arrangement is bad news for former Ansett staff, with administrator MenthaKorda being forced to write $3.7 million off the aircraft's value. Two months ago it warned plunging aircraft values were expected to wipe 20 per cent off Ansett's staff payouts.
According to Mr Henderson, the aircraft purchase deal provided Skywest with substantial benefits. "Skywest obtains control over its fleet for substantially less than the $13 million residual value of Skywest's existing lease commitments," he said.
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So, things looking a bit brighter for the WA regional perhaps, this has to be a relief for them, plus i hear bookings for the first six months of the year have been healthy, and, i hear they are very pleased with Aerocare, their new ground handling provider, XR apparently very happy with their new contractor...:ok: :ok:
Topend3...
By Geoffrey Thomas
THE resurgence of Skywest Airlines gained momentum yesterday when the airline was able to reach agreement with the Commonwealth Bank of Australia and the Ansett administrator on the refinancing of its fleet of five Fokker 50s.
Industry observers said CBA had little option but to agree to new terms because of the worldwide glut of aircraft, with more than 2000 grounded. But in a significant windfall for Skywest, managing director Scott Henderson was able to secure a much more equitable financing arrangement for the airline.
Skywest will buy the aircraft for $9.4 million, comprising a $6.5 million loan from the CBA, a $1.3 million loan from the Ansett administrators and a cash payment of $1.6 million.
But the new arrangement is bad news for former Ansett staff, with administrator MenthaKorda being forced to write $3.7 million off the aircraft's value. Two months ago it warned plunging aircraft values were expected to wipe 20 per cent off Ansett's staff payouts.
According to Mr Henderson, the aircraft purchase deal provided Skywest with substantial benefits. "Skywest obtains control over its fleet for substantially less than the $13 million residual value of Skywest's existing lease commitments," he said.
____________________________________________________
So, things looking a bit brighter for the WA regional perhaps, this has to be a relief for them, plus i hear bookings for the first six months of the year have been healthy, and, i hear they are very pleased with Aerocare, their new ground handling provider, XR apparently very happy with their new contractor...:ok: :ok:
Topend3...