FPG records $35m impairment on Air Mauritius | News | Airfinance Journal

FPG records $35m impairment on Air Mauritius

Japan’s Financial Products Group (FPG) has posted JPY3.7 billion ($35 million) in losses related to its aircraft dealings with under-administration Air Mauritius.

Presenting its performance for its fiscal first quarter, ended 31 December, FPG said it “recorded losses of JPY1 billion of residual risk” on the Air Mauritius account, “and with this completed the disposition of losses for this project”.

In the previous quarter, FPG had recorded JPY2.7 billion in losses relating to Air Mauritius “aircraft for sale, which was capitalized as an asset of FPG, in light of the decline in the value of the aircraft due to the impact of COVID-19 infection”, the Tokyo-headquartered company said.

FPG noted that it has “no lessee bankruptcy in our equity other than Air Mauritius”.

The Japanese firm posted declining profitability of its aircraft business for its year ended 30 September 2020 and first quarter ended 31 December.

Air Mauritius is expected to halve its fleet going forward, operating four Airbus widebody aircraft and three ATR72s.

Air Mauritius' current fleet includes two Airbus A319s, three ATR72-500s, three A350-900s, two A330-900s, two A340-300s and two A330-200s, according to Airfinance Journal’s Fleet Tracker. 

Air Mauritius previously received four A350s – two on standard operating lease agreements with Aercap and two sourced in the Japanese operating lease with call option (Jolco) market with equity underwritten by FPG and Tokyo Century, respectively. Air Mauritius last year subleased two of the four units to South African Airways (SAA).

Air Mauritius previously announced orders for six A350-900s, two on operating leases and four on direct order with Airbus. Two units remain in Airbus' outstanding orders log.

Last November, Air Mauritius officer in charge Indradev Buton said that the African carrier was looking to build its future fleet around the A320neo and A350 models and was likely to phase out all its Airbus A330-200s as part of its restructuring plan.

Last year the African carrier advertised the sale of two A340-300s, one A330-200 and two A319s.

Air Mauritius has been in administration since April 2020.

Transaction SnapshotAir Mauritius | A/c sale (RFP) | 07-20 | $61.2m(est.) | 5xA/c

Value:
$61.20m USD
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