Air Lease announced an agreement to sell 25 of its Embraer E190 and E175 aircraft to Nordic Aviation Capital.

These 25 Embraer aircraft account for less than 10% of Air Lease’s current fleet and have generally been used for regional passenger traffic demand. Transfers of these aircraft to NAC will begin this quarter and are expected to conclude in Q1/17. As the aircraft are moved, Air Lease expects to use some of the capital to add incremental aircraft acquisitions as market conditions permit.

“We are pleased to have reached attractive terms on another win-win transaction with NAC,” said Steven F. Udvar-Házy, chairman and CEO of Air Lease. “After our teams successfully worked together on the ATR aircraft portfolio transaction, NAC saw additional value in our fleet of Embraer aircraft. This transaction is another great result for ALC shareholders as we continue to demonstrate the value creation of our leasing platform. The regional jet business has been very successful for ALC and the timing is now appropriate for us to have a smaller role in this market segment and to refocus our resources on growing our main line jet fleet.”