Avation PLC (LON:AVAP), the commercial passenger aircraft leasing company, said it has completed the purchase of its first engine, which is now available for lease as a spare engine to commercial aircraft operators.
In a statement, the firm – which is currently carrying out a strategic review of its business – pointed out that the acquired engine is virtually new having only completed 54 hours and is a Pratt and Whitney Canada PW127M.
READ: Avation climbs as it considers possible sale
Jeff Chatfield, Avation’s executive chairman commented: "The Company believes the line of engine leasing will be modestly accretive to its business and tactically useful in support of its own and its customers' fleets from time to time.”
“The Avation marketing team is in the process of establishing marketing plans for engine leasing and establishing the sales and marketing process," he added.
Avation shares climbed on Monday after the group revealed it had begun a strategic review which could result in the company selling itself.
The aircraft leasing firm said the strategic review will consider multiple options to “maximise value for shareholders” including merger and acquisition activity, sales within the firm’s aircraft portfolio, as well as the sale of the entire company.
Formally announcing that it was now in an offer period, Avation also confirmed that it was in preliminary discussions with an interested party over a potential sale, although there was no certainty that an offer will be made.