Phoenix-based Mesa Air Group has reached an agreement to sell off its stake in a Chinese joint venture airline for a net $3.6 million, according to Aviation Week magazine.
The sale, which is expected to close this month, means the financially troubled regional airline operator will take a loss on its $5.8 million investment, the magazine said.
Mesa invested in the regional joint venture with Shenzhen Airlines in late 2006, but the carrier, called Kunpeng Airlines, has struggled.
Mesa said in a filing with the Securities and Exchange Commission that it will sell its interest in Kunpeng to Shenzhen for $4.5 million, minus return of security deposits totaling $900,000.
Mesa will also have to find a new use for five regional jet aircraft that it leased for use by the Chinese regional service, the magazine said.