CORRECTION: BAE agrees to sell regional aircraft division
Published: May 26, 2011
(Corrects sale figure)
BAE Systems has agreed to sell its regional aircraft lease portfolio and asset management business to Fortress Investment Group for $ 187 million.
The sale is expected to close in the third quarter of 2011, subject to regulatory approval.
The unit is responsible for managing 151 commercial aircraft owned by BAE Systems, all of which are included in the sale. It also manages third party-owned aircraft on behalf of airlines and investors.
BAE Systems asset management division chief Paul Stirling said in February 2011 that BAE was not intending to stay in the regional aircraft business and would therefore not invest heavily in the operation.
The support and engineering activities of BAE systems’ regional aircraft division are not included in the sale.
“BAE Systems regional aircraft support and engineering businesses will continue to provide the full range of support to the new owner, including continuing airworthiness and engineering services,” said the unit’s managing director Alan Fraser.
“We are looking forward to continuing our close working relationship with the asset management business under its new ownership.”
The division was founded in 1993 to manage BAE’s portfolio of BAe 146 and Avro RJs as well as ATP and Jetstream turboprops.