Via
RNS and SGXNET
AVATION PLC
("Avation" or "the
Company")
SALE OF TWO AIRCRAFT FROM
ORDERBOOK
Avation PLC (LSE: AVAP), the
commercial passenger aircraft leasing
company, is pleased to announce that it has entered into a sale and
purchase agreement with an airline client for its next two new ATR
72-600 deliveries from the manufacturer, following an earlier
exercise of purchase rights under Avation's long-term aircraft
purchase contract with ATR.
The sale of these aircraft is
subject to customary conditions precedent and will complete on the
day of delivery of the aircraft from ATR which is scheduled in Q4
of 2024 and Q1 of 2025, with Avation having received two cash
deposits from the airline.
Following this transaction, Avation
will be left with ten ATR 72-600 aircraft on order for delivery
from ATR between the last quarter of 2025 and 2028 and purchase
rights for a further 24 aircraft with an extended expiry date of
June 2034.
Jeff Chatfield, Executive Chairman
of Avation PLC, said: "The Company is primarily an operating lease
provider and prefers to lease commercial aircraft to airlines for a
suitable period. However, from time to time the Company is willing
to dispose of aircraft if valuations are constructive. The decision
was made to sell these next two deliveries due to attractive
economics. The Company expects net cash proceeds of over $10
million at completion of the sales of the two aircraft with these
proceeds earmarked for pre-delivery payments for Avation's
ten-aircraft ATR 72-600 order.
"We are pleased that this airline is
based in the Americas which we believe is fertile ground for
significant numbers of ATR 72-600s.
"Avation remains committed to
establishing a ten-year programme for the supply of new regional
aircraft with sensible economics as a key component of our
long-term business strategy. ATR 72s with their low operating costs
and class-leading low carbon emissions credentials are an essential
addition to almost all major airlines' regional
networks."
-ENDS-
Enquiries:
Avation PLC - Jeff Chatfield,
Executive
Chairman
+65 6252 2077
Avation welcomes shareholder
questions and comments and advises the email address for questions
is: investor@avation.net
and the Company provides an investor Q & A
during the conference call associated with release of results. The
head office telephone number is +65 6252 2077.
Notes to Editors:
Avation PLC is a commercial
passenger aircraft leasing company, headquartered in Singapore,
owning and managing a fleet of widebody, narrowbody jet and
turboprop aircraft which it leases to airlines across the world.
The Company's customers include 16 commercial airlines in 14
countries. Avation's fleet of aircraft is currently fully leased
and utilised. The Company is listed on the London Stock Exchange
with ticker AVAP.L, more information on Avation is available at
www.avation.net.