Avation PLC (LSE:AVAP) is to sell two jets to an Americas-based airline for net proceeds of over US$10 million (£7.9 million).
Two new ATR 72-600 turboprop jets will be sold to the airline following scheduled delivery late this year and early next, the commercial aircraft leasing company said on Friday.
Executive chairman Jeff Chatfield said Avation, despite primarily being a leasing company, sold aircraft from “time to time” if “valuations were constructive”.
He added: “The decision was made to sell these next two deliveries due to attractive economics.”
Avation already received cash deposits for the jets from the airline and is awaiting delivery of ten further 72-600s from manufacturer ATR, due between 2025 and 2028.
Proceeds from the sales are earmarked for pre-delivery payments relating to the order, Chatfield explained, with Avation holding purchase rights for an extra 24 jets from ATR on top of this.
"We are pleased that this airline is based in the Americas which we believe is fertile ground for significant numbers of ATR 72-600s,” Chatfield said.
“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.”