Earlier today, Flybe Limited ('Flybe') ceased operating and was placed in administration. Chorus had three ATR 72-600 and five Dash 8-400 aircraft on lease with Flybe.
These aircraft account for less than 5.0% of the net book value of Chorus' regional aircraft leasing segment fleet and less than 5.0% of Chorus' consolidated annualized 2019 EBITDA. Chorus holds security in respect of these aircraft and has a plan to manage their repossession and remarketing. Furthermore, Chorus' loan agreements provide time and flexibility to remarket the aircraft.
"We have planned for this contingency and are executing against our plan," stated Steven Ridolfi, President, Chorus Aviation Capital. "We are currently in negotiations with prospects for these aircraft. As noted, these aircraft represent only a small portion of the value of our leased aircraft portfolio."