Air Malta sells Avro RJ to Bahrain armed forces

Air Malta has agreed to sell one of its seven Avro RJ aircraft to the Bahrain Armed Forces for $8.1 million, sources close to the aviation industry told The Times.

The sale of the RJ 85 has reduced the airline's monthly sale and lease back agreement payments from $727,000 to $584,000. This means Air Malta will save $5 million in the course of its payments schedule for the aircraft which end in March 2007, the sources added.

They said that selling the RJs in the current climate was very difficult because there was little demand for this type of aircraft.

The sold RJ 85 was originally due to be delivered last June but delays at the buyer's end meant that the purchase was not finalised until the end of August.

The sources said Lufthansa had also expressed a "strong interest" in leasing the other two RJ 85s for about $75,000 a year.

The remaining four RJ 70s were more difficult to sell because of their smaller capacity, the sources explained.

The Air Malta RJs had been leased to AzzurraAir but the national airline repossessed them after the Italy-based airline defaulted on the lease agreements.

Air Malta had a 49 per cent shareholding in AzzurraAir until it was declared bankrupt last July.