Avation PLC (LON:AVAP) has exercised an option to acquire new aircraft from manufacturer ATR, with deliveries scheduled between 2020 and 2022.
The passenger aircraft leasing firm said the eight ATR 72-600 planes would extend its order book and firm delivery horizon, with business growth in regional turboprops now continuing out to 2022.
READ: Avation delivers second ATR 72-600 turboprop plane to Danish Air Transport
Jeff Chatfield, Executive Chairman of Avation, added that the company had also maintained its purchase rights and price protection over a further 25 aircraft extending to December 2025.
“We believe that the market for the ATR 72-600 will continue to be strong as the aircraft is the most fuel-efficient aircraft in its class and dominates sales in its market segment,” he said.
The new agreement follows the delivery of an ATR 72-600 by Avation to Danish Air Transport in November, with the company having leased two of the aircraft to DAT on 12-year leases.
In early trading Thursday, Avation shares were up 1.7% at 262p.