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Avation sells Airbus A321-200 aircraft to Asian buyer in portfolio diversification push

The company said it had entered into a sale and purchase agreement with the buyer that was expected to close before the end of the month

Airbus A321-200
The price tag for the aircraft is around the current market value

Commercial aircraft leaser Avation PLC (LON:AVAP) has sold a 23-month old Airbus A321-200 aircraft to an Asian buyer in a push to diversify its portfolio.

The company said it had entered into a sale and purchase agreement with the buyer that was expected to close before the end of the month, with the price tag around the current market value for an aircraft of this type and age.

READ: Avation delivers first ATR 72-600 aircraft to Danish Air Transport

Jeff Chatfield, executive chairman of Avation, said the sale of the aircraft was “purely for risk management and portfolio diversification reasons”, adding that the sale was aimed at reducing financial exposure to one operator and jurisdiction.

Chatfield also said the company’s book value for the aircraft was materially lower than the current market value due to an “advantageous initial purchase”.

In late-afternoon trading Wednesday, Avation shares were up 0.8% at 252.5p.

--Adds share price--

Quick facts: Avation PLC

Price: 120 GBX

LSE:AVAP
Market: LSE
Market Cap: £75.2 m
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