- Disposal of two new aircraft on order with manufacturer
- Sale supports valuation of purchase rights for 34 aircraft
- 49 per cent discount to spot NAV estimates
Aircraft leasing company Avation (AVAP:133p), a lessor of 34 commercial aircrafts, has entered a sale agreement with an undisclosed American airline for the purchase of two new ATR 72-600s that are due for delivery in the final quarter of 2024 and early next year.
Including the pre-delivery deposits Avation made to the manufacturer after exercising its purchase rights under a long-term aircraft purchase contract, the company will realise net cash proceeds of $10mn (£7.9mn). The funds are earmarked for pre-delivery payments on a further ten ATR 72-600s that are on order with the manufacturer for delivery from late 2025 to 2028. In addition, Avation has purchase rights for a further 24 aircraft with an extended expiry date of June 2034.