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Investment in Other Companies
3 Months Ended
Mar. 31, 2013
Investment in Other Company  
Investment in Other Company

Note H — Investment in Other Company

 

On September 29, 2010, the Company invested $7 million for a 30% ownership interest in Mekong Aviation Joint Stock Company, an airline operating in Vietnam (“Air Mekong”). During 2011, the Company invested an additional $3 million in Air Mekong. As of March 31, 2013, the Company’s investment balance in Air Mekong was $1.7 million.

 

The Company’s investment in Air Mekong has been recorded as “Other Assets” on the Company’s consolidated balance sheet. During 2012, the Company’s ownership interest in Air Mekong decreased to 17% as a result of additional financing received by Air Mekong. As a result, for purposes of GAAP, the Company no longer has significant influence over the operations of Air Mekong. Beginning October 1, 2012, the Company ceased to account for its investment in Air Mekong under the equity method and, subsequent to that date, has accounted for its investment in Air Mekong under the cost method.

 

Beginning in August 2010, the Company sub-leased four CRJ900s to Air Mekong.    During the three months ended March 31, 2013, the Company terminated its sub-lease with Air Mekong and recognized $5.1 million of other income primarily due to the recognition of contingent rent payments, net of the write-off of certain maintenance deposits. The contingent rent payments were collected and realized related to aircraft maintenance obligations and no are longer payable to Air Mekong as a result of the sub-lease termination.