Pepco Subsidiary Completes Sale of Commercial Aircraft
Friday, April 14, 2000
For Immediate Release
April 14, 2000
Potomac Capital Investment Corporation (PCI), the wholly owned subsidiary of Potomac Electric Power Company (POM-NYSE), announced today the completion of the sale of three large commercial aircraft and an agreement to sell a fourth aircraft – two MD-82s on lease to Continental Airlines and two B-737s on lease to United Airlines. The sale of the fourth aircraft is expected to close this month.
The sale of these assets, which is consistent with PCI’s objective of exiting the aircraft leasing business, will result in an after-tax loss of $5.5 million which is being recorded in the first quarter of 2000. With this sale, PCI has ten aircraft remaining in its portfolio, down from 33 in 1995. Of the remaining ten aircraft, five are finance leases with the balance being operating leases.
John D. McCallum, PCI’s President and CEO, said that PCI is continuing to aggressively pursue the sale of the balance of its aircraft portfolio which will allow PCI to focus its resources on its growing telecommunications business, Starpower.
Pepco (NYSE: POM) is an investor-owned utility that provides electricity in Washington, D.C. and the Maryland suburbs, serving more than 700,000 customers. Pepco, through its family of subsidiaries, also offers electric energy, natural gas, Internet access, local and long distance telephone, cable television and energy management services in the Mid-Atlantic region.
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