15th Nov 2016 10:25
LONDON (Alliance News) - Aircraft leasing company Avation PLC said Tuesday its fleet metrics have continued to improve since the end of its last financial year, and it said it is considering selling 22 of its ATR turboprop aircraft.
According to the company, the weighted average age of the fleet declined to 3.3 years at November 1 and the weighted average lease term increased to 7.6 years.
"Avation has achieved significant progress in building and diversifying its aircraft fleet, and will continue this growth during the remainder of the current period with a further two new Airbus A321 jets to VietJet Air scheduled for delivery before December 31, 2016," Executive Chairman Jeff Chatfield said in a statement, ahead of Avation's annual general meeting on Tuesday.
"As scale and diversification are delivered into our aircraft fleet, we will strive to lower the cost of debt, which improves the profitability of our existing leasing business and enables Avation to be more competitive in our mission to attract new airline customers," he added.
Avation added that it has appointed a financial adviser to evaluate a proposal made to purchase 22 of Avation's ATR turboprop aircraft, but said no decision has been made to actually sell the portfolio.
"Should a sale of the portfolio be concluded, the board would consider a dividend for part of the proceeds from the profit on the sale of the portfolio assets to shareholders immediately following conclusion of the transaction. Avation would then seek to reinvest the remainder of the proceeds into replacement aircraft assets that would rebuild the fleet and add further diversification and new airline customers," Chatfield said.
Avation also said it has decided to declare and pay future dividends in dollars, as all of its assets and revenues are denominated in that currency. However, shareholders will be provided the opportunity to elect to receive dividends in pounds or in other currencies.
Shares in Avation were trading up 2.5% at 187.50 pence on Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Avation