Transmile sells its MD-11 Freighters to FedEx

Malaysia-based Transmile has for some time been negotiating with FedEx over the sale of some or all of its four MD-11Fs, at a rumored price of $17 million per plane. Transmile parked the MD-11Fs two years ago because it could not find a profitable use for them, and FedEx clearly wanted them, but negotiations were complicated by conditions imposed by some of Transmile’s creditors, including a stipulation that any purchaser — including FedEx — must take all four units.

Three days ago Transmile’s Board filed a notice with the Malaysian securities regulator announcing that it had reached agreement with FedEx “to dispose of four (4) MD-11F aircraft at a disposal consideration for each aircraft of US$17.0 million, to be satisfied entirely in cash.”  The agreement was subject to approval by Transmile’s creditors, and the Malaysian High Court, but the company tells Cargo Facts that those approvals have now been granted and the first of the four freighters will be delivered to FedEx next week. The four units are msns 48444, 48446, 48485, and 48486

Transmile, which ran into financial trouble several years ago, has been cash flow positive recently, and this sale will be a major boost to progress in its restructuring plan.