14th Nov 2014 10:19
LONDON (Alliance News) - Avation PLC Friday said it has entered into a deal to lease two ATR 72-600 aircraft to Airline Allied Services Ltd, a unit of Indian national carrier Air India, for 12 years.
The aircraft leasing company said the two aircraft will be flown under the name Air India Regional and are scheduled for delivery in December this year and January 2015.
To finance the deliveries, Avation has signed a binding letter of offer for senior debt finance with an unnamed export credit agency. It said the cost of funding is in line with its typical commercial bank-sourced senior funding.
"Consistent with our strategy of diversifying the customer base and geography for our leased aircraft we are pleased to announce this new client and geographic diversification into India. We welcome Air India Regional as an operator and are pleased to have secured additional export credit finance for India," said Executive Chairman Jeff Chatfield.
Shares in the company were up 0.1% to 17.75 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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