Transmile sells freighters to FedEx
13 / 01 / 2011
MALAYSIA’S Transmile Group is selling off four aircraft to FedEx while it negotiates debt restructuring.
The used aircraft sale and purchase agreement involves four 20-year-old MD-11F aircraft, which have been left idle since April 2008.
Transmile said that the idling of the widebody freighters was costing up to RM1.18 million (US$386,000) a year in parking, storage and maintenance costs.
The RM208.8 million ($68.2 million) sale price of the four freighters will be used partially to settle the outstanding debt of the company, which amounted to RM528.9 million ($172.8 million) at 30 September 2010.
The airline reported a net loss of RM135.1 million ($44.1 million) in the third quarter of 2010, down from a net profit of RM15 million ($4.9 million) in the same quarter last year when it failed to find buyers for its wide-body aircraft.
Transmile is unlikely to meet its 23 February regularisation-plan deadline although negotiations on debt restructuring by lenders is still some way off finalisation.