Avation PLC (LSE:AVAP) recently made headlines with its announcement to sell two ATR 72-600 turboprop jets to an Americas-based airline, securing net proceeds of over US$10 million (£7.9 million). The commercial aircraft leasing company is set to deliver the two jets by the end of this year and early next year, showcasing its commitment to strategic decision-making in the aviation sector.
Executive chairman, Jeff Chatfield, emphasized that while Avation predominantly operates as a leasing company, it occasionally opts to sell aircraft when valuations present favorable opportunities. In this case, the decision to sell the next two scheduled deliveries was driven by the promising economics surrounding the transaction.
The sale of the jets comes at a time when Avation is already looking ahead to receive ten additional ATR 72-600s from the manufacturer, ATR, between 2025 and 2028. The proceeds from the recent sales have been allocated towards pre-delivery payments associated with the impending order, demonstrating the company’s proactive approach in managing its aircraft portfolio.
Chatfield also revealed that Avation holds purchase rights for an additional 24 jets from ATR, indicating a strategic vision for future expansions and partnerships. He expressed delight in engaging with an airline based in the Americas, a region recognized for its potential demand for ATR 72-600s.
The decision to focus on the supply of new regional aircraft reflects Avation’s dedication to establishing a ten-year program rooted in sustainable economics. Chatfield highlighted that ATR 72s offer notable advantages such as low operating costs and exceptional environmental credentials, making them an attractive choice for major airlines looking to enhance their regional networks.
With a strong emphasis on long-term business strategy, Avation remains committed to fostering partnerships and investments that align with its vision for growth and sustainability in the aviation industry. The sale of the ATR 72-600 jets represents not only a strategic transaction but also a testament to the company’s trajectory towards creating value for its stakeholders while contributing to the advancement of regional air connectivity.
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