The company, in a statement, noted that the rent is at market rate and the new agreement runs to June 2028.
"We feel it is prudent in terms of risk mitigation to extend the duration of this lease to the year 2028, given the uncertain near term outlook for mid-life narrow-body commercial passenger aircraft," said chief executive Jeff Chatfield.
In April, the aircraft leasing firm said it can “successfully operate for an extended period greater than a year” as it unveiled a number of measures to support its finances during the coronavirus pandemic.
The aircraft leasing company said its liquidity position is “satisfactory” with total cash of US$129mln, US$53.9mln of unencumbered assets and US$11.1mln in trade receivables.
Avation also said there were no aircraft lease expiries before August 2021 and that is has lowered its administration and general expenses.
Meanwhile, the company said some ATR aircraft in its portfolio were “currently operating normally” and that the aircraft were typically used on regional routes which it predicted will be the first segment of the industry to recover from global travel restrictions during the pandemic, as “government, essential and health services are significant users of domestic air travel”.