Avation PLC (LON:AVAP) has terminated leases for two of its ATR 72-600 aircraft with FlyBe after the airline collapsed into administration overnight.
As FlyBe had been sub-leasing the planes to Loganair, Avation said the Scottish carrier will now become its customer and will take over the leases for the two aircraft.
READ: FlyBe latest coronavirus victim: collapses into administration
FlyBe, the UK’s biggest regional airline, was brought down by a slump in bookings as a result of the coronavirus outbreak and its failure to secure an emergency rescue loan of £100mln from the British government.
The collapse, which will cost around 2,000 jobs, will also result in a financial hit for FlyBe's owner Connect Airways, a consortium of firms led by Virgin Airlines which rescued the airline in July last year.
Avation’s shares were 3.2% lower at 252.5p in lunchtime trading on Thursday.