20th Oct 2014 06:37
LONDON (Alliance News) - Avation PLC Monday said it will buy two new Airbus A321 aircraft and lease them to Thomas Cook Group PLC, as part of the travel operator's previously-announced fleet renewal programme.
In a statement, Avation said the new aircraft are due to be delivered by Airbus in February and March 2016.
The lease agreements with Thomas Cook are conditional on the sale of the aircraft to Avation and the financing of the purchase, it said. The term of the leases is initially 12 years with further 6 year options, exercisable by Thomas Cook, with the revenue from the operating leases at "typical commercial lease rates", it added.
The deal will mark Avation's first purchase of brand new jet aircraftm Chairman Jeff Chatfield said.
"Avation seeks 12 year leases due to the predictability of the revenue stream over a meaningful time scale. This transaction represents an approximately USD100 million investment. Avation has committed to the sale and leaseback transaction along with an aircraft pre-delivery finance program until delivery in 2016. Avation is willing to consider aale and lease backs from major commercial airlines and also to provide commercial airlines with pre-delivery finance," Chatfield said in a statement.
By Steve McGrath; [email protected]; @stevemcgrath1
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