LEASE OF ATR 72 AIRCRAFT - CREDIT RATING UPGRADE
Via RNS and SGXNET
AVATION PLC
("AVAP" or "the 'Company")
LEASE OF A NEW ATR 72-600 AIRCRAFT AND CREDIT RATING OUTLOOK UPGRADE
Avation PLC, (LSE: AVAP), the commercial passenger aircraft leasing company, is pleased to announce that it has signed a 10-year lease with Braathens Regional Airways AB ("Braathens") for a fifth new ATR 72-600 aircraft from Avation's orderbook. The aircraft will be delivered at the manufacturer's facility in Toulouse, France in March 2020.
The Company had previously announced the signing of leases for four ATR 72-600 aircraft to be delivered to Braathens between the fourth quarter of 2019 and the end of the first quarter 2020. The first of these aircraft will be delivered in mid-December 2019.
According to the manufacturer, the ATR 72-600 aircraft has a significant environmental advantage over regional jets and other turboprops with 40% less CO2 emissions, saving around 4,000 tons of CO2 per aircraft per year (*). Turboprops are inherently more efficient than jets on short sectors as they require less engine power and therefore consume less fuel with similar overall trip duration. The ATR aircraft is the market-proven benchmark for short flights of about a one-hour duration. Avation is a supporter of ATR's objective of becoming a carbon neutral company by 2030.
Change in Credit Rating
The Japan Credit Rating Agency Ltd announced on the 11th of December 2019 that the Outlook for Avation's Foreign Currency Long-term Issuer Rating of BB had been upgraded to Positive.
Executive Chairman Jeff Chatfield said "We are pleased to establish a fifth aircraft lease with Braathens, an existing client. In our view the aircraft may be eligible for green finance given the efficient nature of the ATR 72-600. We also note the positive outlook on Avation's credit rating from the Japan Credit Rating Agency Ltd. The cost of funds is a key driver of aircraft lessor profitability and the Company constantly seeks to improve its credit rating in order to lower its funding cost."
(*) assuming an average route distance of 300nm (550km)
- ENDS -
Enquiries:
Avation PLC - Jeff Chatfield, Executive Chairman +65 6252 2077
Avation welcomes shareholder questions and comments and advises the email address is: investor@avation.net
Notes to Editors:
Avation PLC is an aircraft leasing company, headquartered in Singapore, owning and managing a fleet of commercial passenger aircraft which it leases to airlines around the world.
More information on Avation is available at www.avation.net.
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