Avation at cruising altitude with solid portfolio of airline customers
- Avation repays outstanding ECA loans associated with 8 eight aircraft formerly leased to Virgin Australia
Quick facts: Avation PLC
Price: 105 GBX
Market Cap: £72.96 m
About the company
Avation PLC is a commercial passenger aircraft leasing company that was incorporated in England and Wales in 2006 and whose shares are admitted to the standard segment of the UK listing authority's official list and are traded on the Main Market of the London Stock Exchange (LSE: AVAP).
Avation owns and manages a fleet of aircraft which it leases, through its subsidiaries, to airlines across the world. Our customers include Loganair, Virgin Australia, Air France, easyJet, Eva Air, Philippine Airlines, Air India, Vietjet Air, Fiji Airways, Mandarin Airlines, Cebu Pacific, Garuda Indonesia, Galistair, airBaltic and Danish Air Transport. The company’s fleet includes Airbus A320 and A220 aircraft, Boeing 737 NG and 777-300ER aircraft, ATR 72 and Fokker 100 aircraft.
How it is doing
Avation PLC (LSE:AVAP), a commercial passenger aircraft leasing company, said it repaid the outstanding export credit agency (ECA) insured loans associated with eight ATR 72 aircraft that were previously on lease to Virgin Australia (ASX:VAH) Airlines.
"The export credit loans associated with the Virgin Australia (ASX:VAH) aircraft have now been refinanced and retired,” said executive chairman Jeff Chatfield. “It is pleasing that commercial bank aircraft lending appears to be reopening following the disruption caused by COVID-19."
The loans were repaid using a combination of the release of deposits held by the ECAs and a new commercial bank financing package backed by the recently announced leases of three ATR 72 aircraft to Hevilift.
Avation PLC (LSE:AVAP) (LSE:AVAP) said there is a high level of confidence that a US Chapter 11 restructuring of customer Philippine Airlines (PAL) would be approved – a move that would provide future certainty around a Boeing 777-300ER leased to the carrier.
A successful restructuring would ensure that Avation's aircraft remained with PAL and that the UK-listed group would recommence collecting cash rent on the aircraft for the first time since mid-2020.
No financial details were provided, though investors were told the sale of the twin-engine jetliner, which is leased to airBaltic, will realise a gain for the company.
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