Avation announces sale of two ATR 72-600 aircraft to American airline

Avation announced the execution of a sale and purchase agreement with an airline client for the next two ATR 72-600 aircraft deliveries from the manufacturer. This agreement follows the earlier exercise of purchase rights under Avation’s long-term aircraft purchase contract with ATR.

Jeff Chatfield, Executive Chairman, stated: “The Company primarily operates as an aircraft lease provider and generally prefers to lease commercial aircraft to airlines for an appropriate period. However, the Company is occasionally willing to dispose of aircraft when valuations are favourable. The decision to sell these next two deliveries was driven by attractive economic considerations. The Company anticipates net cash proceeds of over $10 million upon the completion of the sale of these two aircraft, with these funds 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 a promising market for a significant number of ATR 72-600s.

“Avation remains committed to establishing a ten-year programme for the supply of new regional aircraft with favourable economics as a core component of our long-term business strategy. ATR 72s, with their low operating costs and leading low carbon emissions credentials, are an essential addition to the regional networks of almost all major airlines.”

The sale of these aircraft is contingent upon customary conditions precedent and is expected to be completed upon delivery from ATR, scheduled for the fourth quarter of 2024 and the first quarter of 2025. Avation has received two cash deposits from the airline in relation to this transaction.

Following the completion of this sale, Avation will have ten ATR 72-600 aircraft remaining on order for delivery from ATR between the last quarter of 2025 and 2028. Additionally, Avation retains purchase rights for a further 24 aircraft, with an extended expiry date of June 2034.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
X
LinkedIn
Avation plc

More articles like this

Avation plc

Driving sustainability and innovation in European aviation

The European aviation industry is facing a shortage of sustainable aviation fuel (SAF), hindering decarbonization efforts. Learn more about solutions and challenges in this sector. #EuropeAviation #SustainableFuel #ClimateAction

Avation plc

Avation secures US$85 million portfolio financing facility

Avation PLC (LON: AVAP), the commercial passenger aircraft leasing company, has advised that it has signed a term sheet with a major international bank for a US$85 million portfolio financing facility. The facility will initially be used

Avation plc

Women in Aviation: Pioneers and Trailblazers

Since the early days of powered flight, women have taken to the skies, but their achievements have often gone unrecognised. While names like Amy Johnson, who was the first woman to fly solo from the UK

Avation plc

Avation Plc signs long-term lease agreement with JCAS Airways

Avation PLC, a commercial passenger aircraft leasing company based in Singapore, has recently finalised a twelve-year lease agreement with Tokyo-based airline JCAS Airways Co Ltd. This agreement covers a new ATR 72-600 aircraft, marking the first

Avation plc

Airbus partners with the Philippines for SAF feasibility study

Airbus, in collaboration with the Philippine government, has launched a series of feasibility studies focusing on sustainable aviation fuels (SAF) in the country. This initiative was revealed during the Philippines Aviation Summit held in Manila on

Avation plc

Sustainable Aviation Fuel: A key to greener skies

The airline industry is increasingly embracing sustainable aviation fuel (SAF) as a critical solution in the quest for decarbonisation. SAF represents a renewable energy source with far lower carbon emissions compared to traditional fossil fuels, contributing

Avation plc

Regional aviation connecting America’s remote communities

In the United States, regional air services play a critical role in linking rural and remote communities to the wider world, ensuring access to economic opportunities, education, healthcare, and social connections. While major cities benefit from

Avation plc

Avation Plc to publish FY results on 26 September 2024

Avation PLC (LON: AVAP), the commercial passenger aircraft leasing company will publish results for the financial year ended 30 June 2024 at 7am BST (UK) on 26 September 2024.x Avation welcomes shareholder questions and comments and advises