SAN DIEGO — PS Group will become a profitable aircraft leasing and energy exploration and sales company with about $315 million in annual revenue after it receives $280 million in cash for its 83% stake in Pacific Southwest Airlines, PS Group executives told shareholders during Thursday's annual meeting.
However, PS Group Chairman J.P. Guerin cautioned that PS Group will not automatically remain profitable because "none of (PS Group's) businesses are simple businesses."
PS Group will use some of the $280 million in cash that it will receive on May 29 to pre-pay $184 million in debt and pay $40 million in state and federal taxes.
Guerin hinted at a future expansion, either in the holding company's existing aircraft leasing and energy businesses or in an unrelated business. "This is not a good time to sit around with a lot of cash," Guerin said.