This excerpt taken from the AYR 8-K filed Sep 26, 2007.
Flight Equipment Held for Sale
In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (SFAS No. 144), flight equipment held for sale is stated at the lower of carrying value or fair value less estimated costs to sell.
Flight equipment held for sale is not depreciated and related deferred costs are not amortized. Subsequent changes to the assets fair value, either increases or decreases are recorded as adjustments to the carrying value of the flight equipment; however, any such adjustment would not exceed the original carrying value of the flight equipment held for sale. The rent received from flight equipment held for sale and related interest expense, net of income taxes, are reported in income from discontinued operations.