Avation PLC (LSE:AVAP) has responded to press speculation about the standing of some of its leases.
“The company wishes to clarify that, notwithstanding recent stories in the press, all the company's leases remain in force and ongoing, save as otherwise announced," it said a statement.
Avation said the during the height of the coronavirus crisis it entered into a number of agreements with airlines to provide them with financial support.
“As the pandemic has progressed, some of these earlier lease amendment agreements with airlines were superseded and became obsolete.
“Where appropriate, the company has taken steps to formally terminate these earlier lease amendment agreements in the context of negotiations with airlines for further COVID-19 financial support.”
In some cases, the aircraft lessor said it has used legal proceedings to protect its position, but always in the context of ongoing discussions with airlines on the settlement of COVID-19 related rental arrears.
Avation has, at this stage, "received sufficient commitments from its airline customers to suspend further actions in respect to any material claims in active legal proceedings", said the statement.
Jeff Chatfield, executive chairman, added: "In the dialogue with our airline customers we have needed to strike a balance between supporting them and protecting the company's revenues, which task has not been easy; we believe we have managed this balance appropriately.
“The company has made substantial progress in leasing or selling the aircraft returned by Virgin Australia (ASX:VAH). Philippine Airlines is retaining our Boeing 777-300ER aircraft and is paying rents under the airline's plan of reorganization.”