Straight from the WSJ (8/6) Babcock and Brown Air, based in Dublin, Ireland, also reported earnings on Thursday, and said it expects to be sold, as planned, by the end of the year. Current management and assets will remain intact, the company said.
While Babcock and Brown Air is small, with a fleet of 62 aircraft, it's one of a number of leasing operations up for sale, including industry giant International Lease Finance Corp., a unit of American International Group (AIG). CIT's aerospace group is also on the block.
Babcock & Brown said it has placed all but one of its aircraft with customers. Chairman Steven Zissis told analysts on a conference call he was concerned that airlines this summer haven't built up enough cash on their balance sheets to prepare for lean times this winter. The bankruptcy or restructuring of a major airline would put downward pressure on lease rates, hurting the whole leasing market, he said. Zissis said some leases at Babcock and Brown have been restructured this year to assure that they don't go into default. But there have been no repossessions of aircraft this year, he said.
In the second quarter, Babcock & Brown Air reported net income of $14 million, or 46 cents per share, an increase from a year ago. - Read more here: http://online.wsj.com/article/BT-CO-20090806-720429.html