Company
LON:AVAP
Avation is a London Stock Exchange main market company quoted on the 06 October 2010. Avation has both its shares AVAP.L and warrants AVAW.L admitted to the LSE. Avation was incorporated 2006 in England and Wales. Avation PLC is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation's future focus are new technology low CO2 emission aircraft. Our current customers include easyJet, Eva Air, Philippine Airlines, Alliance Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, airBaltic and Danish Air Transport. The company’s fleet includes Airbus A320 and A220 aircraft, Boeing 737 NG and 777-300ER aircraft and ATR 72 aircraft.
337 stories · page 3 of 17
Executive chairman Jeff Chatfield said the aircraft leasing firm is also "well situated to take advantage of the recovery in the airline industry" as the COVID-19 pandemic receded
The aircraft leasing firm said the ATR 72-600 aircraft is currently on lease to US-Bangla Airlines, Bangladesh’s largest private airline
The company’s current fleet is comprised of 49 aircraft including Boeing and Airbus models
“We are starting to observe recovery in the air travel industry, notably in the regional sector"
The group has focused on preserving its liquidity during the crisis
The company unveiled US$46.7mln of (non-cash) impairments.
The agreement gives Avation the financial flexibility to survive the pandemic and develop its business
The commercial aircraft leasing firm reported a pre-tax profit for the year to June 30 of US$14.7mln, adding that lease revenue in the period rose 14% to US$135.3mln despite disruption caused by the coronavirus pandemic
Exposure to Virgin Australia, which went bust earlier this year, is US$74.7mln
Since the start of the coronavirus pandemic, the company said it has completed 12 aircraft transactions including lease extensions, sales and the origination of new leases
Avation had leased 13 aircraft to Virgin Australia, five of which have already been leased to other airlines and the others have either been returned to Avation or will be soon
Avation said it has an agreement with the administrator of Virgin Australia to ensure that the aircraft are properly maintained and stored, and that it will liaise with Virgin regarding the use of the five planes
“The company is fortunate that some of its largest customers are in countries where there has been comparatively lower impact from the pandemic,” said executive chairman Jeff Chatfield
The agreements include the leasing of two ATR 72-500s to another commercial airline in Australia until the end of 2021
The aircraft leasing firm said market disruption caused by the coronavirus meant a sales process was “unlikely to produce an outcome that accurately reflects the long-term value of the company"
"We feel it is prudent in terms of risk mitigation to extend the duration of this lease to the year 2028," said chief executive Jeff Chatfield
Avation suggested the airline's move is a "procedural step" ahead of a possible sale, restructuring and/or refinancing
The company also said it is offering a package of support for its airline clients as the industry comes under pressure from global travel restrictions
The two ATR 72-600 planes will now be directly leased to Scottish carrier Loganair, which was previously sub-leasing the aircraft from FlyBe
Archive
A glance at some of the day's highlights from the Proactive Investors newswire
