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Transport

Avation sells off two Airbuses to focus on newer craft

The leasing specialist said the 2003 built Airbus A321 aircraft which were leased to Thomas Cook Airlines have been sold

In keeping with its strategy to focus on newer aircraft, Avation PLC (LON:AVAP) has completed the sale of two planes.

The leasing firm said the 2003 built Airbus A321 aircraft which were leased to Thomas Cook Airlines have been sold to a US based investor.

The financial terms were not disclosed but the net proceeds will be applied towards funding new aircraft, it added.

Executive chairman Jeff Chatfield told investors: "Avation's fleet policy is to sell older aircraft to other lessors when economic conditions permit, reflecting the company's desire to own new aircraft.

"In our view a disposal policy for mid-life aircraft is part of a sensible risk mitigation strategy. Management estimates that 85% of the balance sheet value of our aircraft relate to aircraft that are currently less than 5 years old and by this metric we have a relatively modern aircraft fleet."

In the 12 months to June 30, the group reported a 25% increase in lease revenue (the amount brought in via leasing out the aircraft) to US$71.2 million, compared to US$56.9mln in the same period last year

EPS (earnings per share) increased 42.5% to 34.2 cents (2015: 24.0 cents), while shareholders will receive an interim dividend of 3.25 US cents against 3 US cents last year.

Shares flew 3.48% higher in early deals to 163.5p.

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