REG - Avation PLC - SUSTAINABLE FUEL DECARBONISATION GROWTH STRATEGY

AvationAnnouncement

20/05/2022 08:15

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RNS Number : 2353M  Avation PLC  20 May 2022

Via RNS and SGXNET

AVATION PLC

("Avation" or "the Company")

 

SUSTAINABLE FUEL AND DECARBONISATION GROWTH STRATEGY

 

Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company
advises that it has established a low carbon transition pathway for its ATR
orderbook to sustain its future growth.

 

ATR are a world leader in regional aviation with dominance of the regional
turboprop aircraft market. The ATR family of turboprop aircraft emit up to 40%
less carbon versus comparable regional jets. More than half of Avation's fleet
by number is already comprised of ATR 72 aircraft. Furthermore, Avation has an
orderbook of two firm ATR 72-600 aircraft to be delivered in 2024 and 28
purchase rights.

 

Existing ATR 72-600 aircraft are certified by the European Union Aviation
Safety Agency ("EASA") for the use of up to 50% sustainable aviation fuel
("SAF"). SAF is the main term used by the aviation industry to describe a
nonconventional (fossil derived) aviation fuel. At least one of Avation's
existing airline customers is already using a blend of SAF in its operations
under this certification. As at the date of this announcement, the price of
jet fuel is at or near its record high. The Company believes that high fuel
prices will increase demand for new technology aircraft and engines with
better fuel efficiency, lower carbon footprint and the ability to use SAF.

 

ATR have recently announced the introduction of aircraft powered by the new
Pratt and Whitney Canada PW127XT engine which is expected to have 20% lower
maintenance costs, extended time on wing, 3% lower fuel consumption and 5%
more power compared with the existing engine variant. Moreover, the
manufacturer expects that the PW127XT engine will be certified to operate with
100% SAF from 2025. When using SAF net emissions of CO2 will be reduced by
80%. Avation's future orders will include this new engine variant or its
successors.

 

On 18 May 2022, ATR announced the intention to develop and launch the ATR EVO
next generation aircraft programme, targeting a further 20% fuel efficiency
improvement, close to net zero CO2 emissions (when using 100% SAF) and a 20%
overall reduction in maintenance costs, with plans for a new powerplant with
hybrid capability and will combine existing and future technologies. ATR aims
to launch the EVO programme in 2023 and targets an entry into service before
2030.

 

Executive Chairman Jeff Chatfield said "Being a longstanding customer of ATR,
Avation is extremely pleased with ATR's plan for technological developments of
its aircraft which target close to net zero CO2 emissions and increased usage
of SAFs. We are excited by the technology pipeline for aviation in relation to
which we believe ATR to be in the vanguard. We believe that our airline
consumers will require a considerable number of such sustainable aviation
technology aircraft as the world accelerates its progression towards global
net zero carbon emissions targets. We believe that ATR's planned developments
are also very timely in the context of the record high fuel prices and fuel
price volatility.

 

"In 2019, Avation financed three ATR aircraft with a "green loan" made under
the UK Loan Market Association's Green Loan Principles. We remain supportive
of further developments in efficiency and reductions in CO2 emissions, from
which we stand to benefit through our ATR orderbook."

 

 

ENDS-

Enquiries:

 

Avation PLC - Jeff Chatfield, Executive
Chairman
+65 6252 2077

 

Avation welcomes shareholder questions and comments and advises the email
address is: investor@avation.net (mailto:investor@avation.net)

 

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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