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RNS Number : 9311Y Avation PLC 19 January 2022
Via RNS and SGXNET
("Avation" or "the Company")
SALE OF AIRCRAFT, TRADING UPDATE, AND RESPONSE TO ANALYST QUESTION
Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company,
advises that it has completed the sale of the first of a series of three
ex-Virgin Australia Airlines ATR72-600s to Aegean Airlines.
The company finished the period ended 31 December 2021 with 42 aircraft in the
fleet of which 50% where modern narrowbody commercial aircraft. The average
age was 5.3 years with remaining lease duration of 6.0 years. The fleet has
unearned contracted revenue from operating leases of $575 million (unaudited)
and an additional $64 million (unaudited) of minimum lease payments receivable
under finance leases.
The collection rate of cash compared with contracted revenues as at the month
of December 2021 was 171% (unaudited) with year-to-date 31 December 2021 cash
collection rate of 91%. The cash and bank balances as at 31 December 2021
were $121 million (unaudited).
Response to Analyst Question
In respect of Philippine Airlines 777-300 aircraft power by the hour rent
collections for the period September 2021 to November 2021 the average monthly
rental was around 95% of the notional level of the applicable contracted fixed
The sale of three ATR aircraft to Aegean Airlines, in addition to the sale of
an Airbus A321 and an Airbus A220 previously announced since 1 July 2021, will
increase liquidity and release approximately $42 million in aggregate net
The company is expected to release its unaudited results for the first half of
the financial year ended 31 December 2021 on 3 March 2022.
Avation's Executive Chairman, Jeff Chatfield said: "We see the air travel
industry experiencing a gradual recovery from COVID-19 with most of our
airline clients having navigated to stabilization of activity levels. We
expect that the results for the first half will demonstrate certain
improvements, albeit remain a loss. The Company sees improvements in
liquidity, revenue collections and a gradual stabilisation of the business.
The Company expects material receipts in the coming months from the sale of
aircraft, the creditor pay out from the Virgin Australia administration and
the PAL restructuring as well as continued collection of debtors and cashflow
Avation PLC - Jeff Chatfield, Executive
+65 6252 2077
Avation welcomes shareholder questions and comments and advises the email
address is: firstname.lastname@example.org
Notes to Editors: Avation PLC is an aircraft leasing company, headquartered in
Singapore, owning and managing a fleet of commercial passenger aircraft which
it leases to airlines around the world. More information on Avation is
available at www.avation.net.
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