16th Nov 2015 10:56
LONDON (Alliance News) - Avation PLC said ahead of its annual general meeting on Monday that it now has the financial capacity to acquire further aircraft, as it makes progress in building and diversifying its fleet.
Following the issue of the first USD100 million tranche of its USD500 million global medium-term note programme, the aircraft leasing company said it now has access to capital which, complemented by asset-backed fixed rate debt, will enable it to buy more aircraft.
Avation has purchased five aircraft since July, the two most recent which it revealed on Monday are being leased to Air China Group subsidiary Shenzhen Airlines and to German airline Air Berlin.
This extends its customer list to 11 airlines in Asia Pacific and Europe, doubling since June 30.
Avation added that it is scheduled to deliver two new Airbus A321 aircraft to Thomas Cook Group PLC's UK operations in February and March 2016. This, and the delivery of the other aircraft, should accelerate Avation's monthly lease revenue to over USD7.5 million for the first time. During 2015, its average monthly lease revenue has been less than USD5 million.
In addition, the pipeline should increase fleet assets to a book value of USD750 million in March 2016 from USD434 million as at June 30, Avation said.
"Our guidance is that these fundamental growth initiatives are expected to propel the second half result to show a significant increase in lease revenues and lead to increased earnings by financial year-end," Chairman Jeff Chatfield said in a statement released ahead of the AGM.
"Our short-term pipeline will further strengthen the company's core leasing business delivering increased revenue, the diversification of assets and customers, and economies of scale," he added.
Shares in Avation were trading down 3.8% at 128.00 pence Monday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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