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AerSale considers buying 24 aircraft in Roswell

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AerSale Corp. intends to buy 24 Boeing aircraft and 16 spare engines that have been stored in Roswell, the corporation announced Friday.

AerSale plans to convert the narrow-body Boeing 757-200s into freight carriers at its Goodyear, Arizona location, according to the news release.

The aircraft have Rolls-Royce RB211 series engines, and the deal would include 16 spare engines.

A request for comment to a company official was not returned by press time.

The international corporation specializes in “aftermarket” commercial jet disposition, storage and refurbishments and is based in Coral Gables, Florida. It has more than 400 employees.

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It leases several hangars and other buildings at the Roswell Air Center for what is known as its technical operations segment, which also operates at facilities in Goodyear, Arizona. Technical operations represent about 27% of the AerSale revenues, which were $304.2 million for the fiscal year ended Dec. 31, 2019.

The technical operations segment — what the Federal Aviation Administration refers to as maintenance and repair organizations (MROs) — focuses primarily on storage, disassembly, modification and distribution of aircraft bodies and parts. The other major segment of the corporation — the asset management segment — deals with sales and leases of aircraft and components.

The storage of airplanes has increased significantly during the COVID-19 pandemic. While the corporation typically stores about 200 aircraft, it now has more than 500 in Roswell and Goodyear, according to information filed with the U.S. Securities and Exchange Commission.

One of the company’s major efforts that has increased in recent months is to convert former commercial jets into freight aircraft.

“As a result of the reduced demand for passenger air travel and the concurrent explosive growth of the e-commerce market, there is a supply shortage of dedicated freighter aircraft for the foreseeable future,” said Craig Wright, AerSale’s president of aircraft and engine management, in a news release.

AerSale Corp. also is in the midst of a merger with Monocle Holdings Inc., a publicly traded corporation based in New York City and formed specifically to acquire a viable corporation that would benefit from having access to public debt and equity money markets.

A revised merger agreement was filed Sept. 4 with the SEC, with stockholders from both Monocle and the privately held AerSale to vote once the filing is approved.

The deal is valued at $300 million to $315 million. AerSale would become the operating entity after the merger and AerSale executives would remain to run the corporation, the SEC filing indicates. The corporation would be debt-free and would have cash on hand of about $128 million after the transaction is completed, which is expected to occur sometime after October.

An organizational chart in the filing indicates that the Roswell operations are expected to continue, as well.

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