Mesa Air Group Inc. ( NASDAQ: MESA ) disclosed that it entered into an aircraft purchase agreement for the sale of 18 CRJ-700 aircraft owned by Mesa to United Airlines ( UAL )
The airline company expects the net proceeds from the sale of such aircraft will be approximately $50M.
Under the terms of the agreement, Mesa Air ( MESA ) said it is providing customary representations and warranties for a transaction of this type including authorization, no conflicts, validity of agreement, regulatory matters, good and marketable title, airworthiness, no liens, aircraft records, manufacturer warranties, and no brokers’ fees.
In addition, United Airlines has agreed to deposit a specified sum per aircraft with FAA counsel to be applied toward the purchase of each aircraft.
Mesa Air ( MESA ) was one of the biggest decliners in the airline sector on Wednesday with a 6.05% decline. United Airlines ( UAL ) was off 0.35%.
For further details see:
Mesa Air sells 18 aircraft to United Airlines