REG - Avation PLC - TEN YEAR LOW CO2 AIRCRAFT ORDERBOOK

AvationAnnouncement

02/05/2024 07:00

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RNS Number : 9776M  Avation PLC  02 May 2024

Via RNS and SGXNET

AVATION PLC

("Avation" or "the Company")

 

TEN YEAR LOW CO2 AIRCRAFT ORDERBOOK

EXERCISE OF TEN LOW CO2 AIRCRAFT PURCHASE RIGHTS; EXTENSION OF MATURITY ON
INCREASED PURCHASE RIGHTS BALANCE TO 2034

 

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, is
pleased to announce that it has established the foundation for its regional
aircraft strategy for the next ten years, by both exercising purchase rights
for ten new ATR aircraft; extending the maturity of residual purchase rights
to 2034 and taking receipt of a further six purchase rights at accretive
commercial terms. ATR are the world's number one regional aircraft
manufacturer with the best-selling, latest technology, sustainable aviation
fuel ("SAF") ready, low CO2 emissions aircraft in the less than 90-seat market
segment.

HIGHLIGHTS:

i.  Avation already has two new ATR 72 aircraft on order pursuant to the
exercise of optional purchase rights;

ii.   Avation has exercised purchase rights for ten additional ATR 72
aircraft for delivery between the last quarter of 2025 and the first quarter
of 2028. All aircraft are expected to be 100% SAF compatible;

iii.  New aircraft will be delivered at a sensible pace in line with expected
airline demand and the manufacturer's production capacity; and

iv.  In addition, Avation has been granted additional purchase rights and now
holds purchase rights for a further 24 aircraft with an extended expiry date
of June 2034.

Emitting 45% less CO2 per trip than similar-size regional jets, ATR aircraft
are already 50% SAF compatible, with the aim to be 100% SAF ready in 2025, as
part of the manufacturer's commitment to low-emission aviation. These aircraft
also contribute to enhancing regional connectivity to remote and underserved
areas worldwide, linking communities and stimulating economic growth by
attracting businesses, tourism and investment.

Jeff Chatfield, Executive Chairman of Avation PLC, said: "Over the years, we
have witnessed the exceptional performance of ATR aircraft, and enjoyed both
strong airline demand and secondary market value retention. Avation believes
that over the next 10 years, low CO2, SAF compatible, latest technology
aircraft such as the ATR 72, and potentially its EVO successor, will be an
essential component for efficient travel worldwide. Avation believes that
establishing a ten-year programme for the supply of new regional aircraft with
sensible economics is a key component of our long-term business strategy. ATR
72s with their low operating costs and class-leading low carbon emissions
credentials are an essential addition to almost all major airlines' regional
networks."

Jeff Chatfield went further to say" In our view each new aircraft delivery
appears to be highly accretive to shareholders and therefore this increase and
extension of purchase rights is highly value accretive for the Company".

Nathalie Tarnaud Laude, Chief Executive Officer of ATR, added: "The continued
trust from a longstanding customer is the best recognition of our efforts to
remain relevant over the years, through continuous innovation. This agreement
not only reinforces our collaboration with Avation, it also reflects the
strong market demand for ATR aircraft. We are proud to contribute to the
success and growth of Avation's portfolio, while fulfilling our vision of
accelerating sustainable connections by ensuring communities worldwide get a
quick, responsible and reliable access to essential services."

 

 

-ENDS-

Enquiries:

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

Avation welcomes shareholder questions and comments and advises the email
address for questions is: investor@avation.net (mailto:investor@avation.net)
and the Company provides an investor Q & A during the conference call
associated with release of results. The head office telephone number is +65
6252 2077.

Notes to Editors:

Avation PLC is a commercial passenger aircraft leasing company, headquartered
in Singapore, owning and managing a fleet of widebody, narrowbody jet and
turboprop aircraft which it leases to airlines across the world. The Company's
customers include 16 commercial airlines in 14 countries. Avation's fleet of
aircraft is currently fully leased and utilised. The Company is listed on the
London Stock Exchange with ticker AVAP.L, more information on Avation is
available at www.avation.net.

 

ABOUT ATR:

ATR is the world's number one regional aircraft manufacturer with its ATR 42
and 72 aircraft, the best-selling aircraft in the less than 90-seat market
segment. The unifying vision of the company's employees is to help everyone,
no matter where they are in the world, to connect and develop responsibly.
Thanks to the efficiency of turboprop technology and the benefits of the
company's focus on continuous innovation, ATR aircraft open over 130 new
routes on average every year, burn 45% less fuel and emit 45% less CO2 than
regional jets. For all of these reasons, ATR aircraft have been chosen by some
200 companies in 100 countries around the world. ATR is a joint-venture
between Airbus and Leonardo. For more information, please visit
www.atr-aircraft.com.

 

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