Avation plc Provides Revenue Guidance for the Half Year Ending December 31, 2018; Delivers Two Aircraft Taking Avation's Current Fleet to 40 Aircraft
The company has taken delivery of two aircraft taking Avation's current fleet to 40 aircraft. The fleet additions comprise an Airbus A220-300 aircraft on lease to airBaltic and an ATR 72-600 on lease to a new airline customer, Danish Air Transport. Furthermore, Avation expects to take delivery of two additional ATR72-600 aircraft before 31 December 2018. The Company retains 25 options and purchase rights over ATR 72 aircraft for delivery up to December 2023. Avation also expects to conclude the sale of one of the five Airbus A321 narrow-body aircraft currently on lease to VietJet before 31 December 2018. Investors should be aware that this aircraft represents one of eight Airbus A321 aircraft in the current fleet and that narrow-body aircraft now comprise approximately half of the fleet by value. The sale of this aircraft indicates that, in the current market environment, the realisable value of narrow-body aircraft in the fleet exceeds book value, in this case by more than ten percent. As at 31 December 2018, it is expected that Avation's fleet will comprise 41 aircraft, with 3 on order. Avation's customers include 14 airlines in 11 countries. The projected average age of the fleet will be 3.6 years and the average remaining lease term will be 7.3 years.