Avation PLC (LON:AVAP) has updated investors on the status of its commercial aircraft fleet and a number of lease transactions as it continues to manage its portfolio and liquidity amid the coronavirus pandemic.
In an update, the firm said it has retained the core complement of commercial, legal, financial and technical skillsets and personnel to ensure it has the resources needed for a lessor platform in the post-coronavirus recovery phase, adding that the impact of the pandemic on the air transport sector has been “material” and that it is managing its portfolio and liquidity “as efficiently as possible”.
Since the start of the pandemic, Avation said it has completed 12 aircraft transactions including lease extensions, aircraft sales and the origination of new leases. Meanwhile, the firm said two Fokker 100 aircraft were sold off the end of their leases, with the sale completed in September.
The company also said it has negotiated the return of two recently delivered ATR72-600 aircraft with Braathens Regional Airways, which re-emerged from administration in September. Avation also said it has transitioned two ATR72-600 aircraft from the now-defunct Flybe to another UK airline, as well as two ATR72-500 aircraft from the failed Virgin Australia to another Australian airline customer and a third former Virgin Australia ATR72-500 to a new operator lessee in Asia.
The group additionally said it has agreed lease extensions on its two ATR72-600 aircraft leased to Alliance Air Aviation Ltd (Air India Regional) to 16 years each.
Avation also said it has agreed a six year lease extension on a Boeing 737-800 aircraft currently leased to an Asian flag carrier.
Shares in the group were 0.3% lower at 121.6p in early trading on Thursday.