REG - Amedeo Air Four Plus - Factsheet

Amedeo Air Four PlusAnnouncement

22/02/2023 07:00

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RNS Number : 6292Q  Amedeo Air Four Plus Limited  22 February 2023

22 February 2023

 

AMEDEO AIR FOUR PLUS LIMITED (the "Company")
(LSE: AA4, LEI: 21380056PDNOTWERG107)

Factsheet

The Company announces that its factsheet for the period to 31 December 2022
is now available on its website at http://www.aa4plus.com
(http://www.aa4plus.com) . An extract from the Chairman's statement within
the factsheet is reproduced below.

The big news is the reopening of China. This is significant for two reasons.
First, its closure was one of the main reasons for international travel
remaining stubbornly at around 75% of pre-pandemic levels.  Second, and of
more direct relevance to us, Chinese tourism is a big element of Thai Airways
traffic and is vital if they are to become a profitable airline. From 1
January 2023, the Company now receives fixed rent from Thai until the original
lease expiry dates, rather than on a power by the hour basis. The airline's
rehabilitation remains ongoing, however lease payments are sufficient to meet
debt service and a contribution towards expenses, without recourse to the
Company's other funds. Thai Airways are doing well and looking for more
aircraft.

Anyone who has booked a flight recently will have noticed that air fares have
jumped a lot.  Whilst a majority of airlines have re-established their route
networks, frequencies still lag. Airlines borrowed over $200 billion during
Covid and these higher fares are needed to restore balance sheets. Many major
airlines have already repaid the government support that they received. Whilst
growth in travel is generally linked to growth in GDP, and is therefore
exposed to a slowdown in economic activity, airlines have shown increasing
confidence. The massive order by Air India to completely renew its fleet
illustrates this.  A newly privatised airline in what is now the world's most
populous country is a major boost.

On 19 January we appointed Tom Sharp to the Board. Tom is a highly experienced
investor both in AA4 and elsewhere. We are now in our 8(th) year of existence
and having a voice which is attuned to shareholder requirements and time
horizons is very important.

In the quarter we carried out a long planned visit to meet with Emirates at
their HQ in Dubai. In addition, we attended the most important air finance
conference in Europe, which takes place in Dublin every year. 4,000 delegates
attended and it is a great opportunity to see industry trends.

One obvious trend is shortage; a shortage of aircraft, pilots, maintenance
capacity, spares and order positions. How long this will last is anybody's
guess, but whilst values of aircraft such as A380s and B777-300ERs remain
depressed, lease rates have ticked up for B777 aircraft where they are
available at the times and places that airlines want them.

Finally, I must thank Amedeo, Liberum and JTC for their continuing efforts as
advisers to the Company.

For further information, please contact:

JTC Fund Solutions (Guernsey) Limited

+44 (0) 1481 702 400

 

Liberum Capital Limited

Chris Clarke / Darren Vickers / Owen Matthews

+44 (0) 20 3100 2000

 

About the Company

The Company is a Guernsey-domiciled company, with shares admitted to trading
on the Specialist Fund Segment of the London Stock Exchange's Main Market
(LSE: AA4).

The Company's investment objective is to obtain income returns and a capital
return for its Shareholders by acquiring, leasing and then selling aircraft.

 

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