The U.S. Navy sold two aircraft carriers to a ship-breaking company for one cent each after decades of service.
The cut-price fee reflects the fact the company will profit from selling the ship metal for scrap, officials said.
Naval Sea Systems Command, a U.S. Navy suborganization, said it had agreed to sell the USS Kitty Hawk and the USS John F. Kennedy to International Shipbreaking Limited, which is based in Brownsville, Texas, USA Today reported.
Towing and ship-breaking is a costly process, and the Navy has previously paid ISL large sums of money to recycle its ships, the Brownsville Herald reported.
"The contract values reflect that the contracted company will benefit from the subsequent sale of scrap steel, iron, and non-ferrous metal ores," said Alan Baribeau, a spokesman for the Naval Sea Systems Command in a statement cited by USA Today.
Both ships were launched in the 1960s and were capable of carrying dozens of aircraft. The Kitty Hawk was deployed in the Vietnam War, and the John F. Kennedy featured in the Gulf War.
The Kitty Hawk was decommissioned in 2017 and the John F. Kennedy in 2009. Both have spent their time since being maintained in naval yards.
The ships are due to be towed to Brownsville for scrapping in the coming months, an ISL spokesperson told the Brownsville Herald.
Read the original article on Business Insider.
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