Chorus Aviation will sell 8 planes for 45 million dollars
Chorus Aviation has announced that it will trade eight aircraft for $45 million. The announcement fell on August 29. The company’s subsidiary, Falko Regional Aircraft Limited (Falko), will sell the aircraft. The regional airliners in question are 100% company owned, meaning they are fully reimbursed. All were previously leased and used by regional airlines. He did not state the specific makes and models of the plane. Chorus’ business model revolves around owning and leasing aircraft to airlines around the world.
A capital exchange
The $45 million that Falko will receive from this deal will be the company’s net income after removing all taxes and royalties. The company did not specify who will be the recipient of the plane. However, it was noted that the transaction will be finalized by the end of the third quarter of 2022. He assured that this exchange will not significantly change his financial forecasts published in early August.
The transaction will increase Chorus’ cash flow by $45 million. Photo: Getty Images
This will be Falko’s first transaction since its acquisition by Chorus. She believes the increased cash flow will be more beneficial than the net worth of the eight planes. The company intends to use these funds for future transactions. Chorus President and CEO Joe Randell said:
“I am pleased to report that the first commercial transaction of the Chorus/Falko era is underway. This transaction is trading at one-time book value and will generate net free cash flow of approximately US$45 million.” The sale of these Chorus-owned aircraft reduces debt and leverage while generating cash flow from trade. We will continue to seek opportunistic asset sale transactions to increase shareholder value,”
An opportunistic partnership
Chorus recently acquired Falko on behalf of its profitable reputation. The Falko team specializes in aircraft trading for increased profits in addition to aircraft leasing and management. Before joining Chorus, she sold over 160 devices. She made Chorus one of the largest aircraft management companies in the world. Randell said,
“The recent acquisition of Falko has established Chorus as a market-leading regional aircraft asset manager and the world’s largest aircraft lessor focused solely on the regional aircraft leasing space, making significantly advance our growth and diversification strategy.
The Canadian airline has built a small empire around regional aviation. It controls a portion of all aspects of the regional airline industry. It does this through its subsidiaries. Falko is the world’s largest asset manager and lessor of regional aircraft. It also owns Jazz Aviation, Air Canada’s regional supplier. Additionally, it owns Voyager Aviation, which specializes in aircraft charters, parts supply and regional aircraft modifications worldwide.
Jazz Air is one of Chorus’ greatest assets. Photo: Getty Images
The company shared the services of its subsidiaries within the regional aviation industry. He stated,
“Chorus subsidiaries provide support services that encompass all stages of the life cycle of a regional aircraft, including: aircraft acquisition and leasing; aircraft refurbishment, engineering, modification, repurposing and transition; contract theft; maintenance, disassembly and supply of aircraft parts and components. »
What do you think of this trade agreement? Let us know in the comments below.