A Cessna Citation CJ4 is a light business jet designed for short-to-medium-range corporate travel, typically seating around 10 passengers.
The company, via subsidiary Coral Pearl Development Ltd. (CPDL), disclosed that the aircraft was sold for $7.5 million (P440 million), a price higher than its value recorded on the company’s books, the filing show .
Why did it sell?
“The cost of maintenance and all other costs and expenses arising from the operation of the aircraft are higher than the rental income generated from the lease of the aircraft,” Nickel Asia said in a filing to the Philippine Stock Exchange.
“The sale of the aircraft based on its present market value, which is ligher than its book value, is expected to improve CPDL's financial position and, consequently, lessen the need for the company to provide financial support to CPDL to carry on its day-to-day activities,” it added.
Background on the aircraft
The CJ4 was delivered in December 2019 and was acquired as part of an upgrade from an older business jet.
A previous regulatory filing showed that CPDL agreed to buy the CJ4, which was manufactured in 2017, for $9.3 million.
It used a trade-in value of $6 million for its Citation XLS+ aircraft, which is a larger business jet, while paying the balance in cash.
—Edited by Miguel R. Camus
