Avation PLC (LON:LSE) has delivered a second new ATR 72-600 aeroplane to a South Asian client and said it did not expect a material impact on its operations from the collapse of Thomas Cook.
This is the second operating lease transaction the AIM-listed commercial passenger aircraft leasing company has arranged with US-Bangla Airlines, a privately owned Bangladeshi airline based at Shahjalal International airport. The plane is being leased at market rates/
With the liquidation of Thomas Cook grabbing headlines in the travel sector, Avation said it had two Airbus A321 aircraft leased to the tour operator.
A remarketing plan is already in place for the two planes, which are of a popular type and are relatively new, and the leasing company has issued default notices with the aim of repossessing the two aircraft "as quickly as possible".
It has letters of credit held as security for rent deposits and maintenance obligations in relation to both aircraft.
Also on Monday, Avation said that at the end of last week it had received just over £616,000 after warrants were exercised. The cash will be used for general corporate purposes.
Earlier this month, Avation posted record annual revenues and profits, respectively up 21% at US$117.7mln and up 28% to US$25.7mln.
At the year-end the fleet numbered 48 aircraft with an average age of 3.4 years and weighted average lease term of 7.5 years, down from 7.7 years.