13th Feb 2015 13:16
LONDON (Alliance News) - Avation PLC Friday said it has agreed a conditional deal to sell two aircraft, one relating to a future 2015 delivery for an ATR72-600, new off the production line in 2015, and the second an existing ATR72-600 which was delivered to a European airline in 2014.
According to the company, the lease on the second aircraft has subsequently been terminated and Avation has repossessed the aircraft. The purchaser is another commercial aircraft lessor counterpart.
The deal is expected to close in the second half of the financial year, according to Avation, which added that conditions for closing include the "typical requirements" for inspection of aircraft and records.
It also said the security deposit from the aircraft lessor counterpart received is USD1 million, with the sales prices "consistent" with current market values of the aircraft. Net revenues will be recorded from the sales.
"Avation currently owns 22 options and purchase rights over future delivery of ATR72-600 aircraft," Jeff Chatfield, executive chairman, said in a statement.
"We intend to use these delivery positions strategically, negotiating as operating lessor with what we view as suitable credit airlines, or otherwise selling these positions. We consider each delivery position option and sale on a case by case basis," Chatfield said.
Avation shares were down 0.5% at 143.85 pence on Friday.
By Samuel Agini; [email protected]; @samuelagini
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