AAR released that results for the third quarter ending February 28, 2010, will be unfavorably impacted by approximately $0.10 diluted earnings per share as a result of Mesa Air Group January 5, 2010 Chapter 11 filing under the United States Bankruptcy Code. The impact mostly reflects the Company’s estimated loss on pre-petition trade accounts receivables and the reduction in the carrying value of other contract related assets.
Sales to Mesa prior to the reorganization filing approximated $70 million per year. Based upon the Company’s current understanding of Mesa’s requirements, the Company expects annual sales to Mesa to now approximate $45 million.
