Avation PLC on Monday revealed that a profitable aircraft sale has freed up cash for reinvestment into previously announced orders.
The Singapore-based commercial passenger aircraft leasing company said it has both sold and delivered a new ATR 72-600 aircraft to an unnamed airline in the Caribbean region, releasing approximately $5 million in cash.
The firm said these new funds would be primarily allocated towards pre-delivery payment instalments for the firm’s order for ten ATR 72-600 aircrafts announced in May.
Its shares rose 0.7% to 169.10 pence on Monday morning in London.
This follows an announcement made last week that Avation had inked an agreement with an unnamed major international bank for an $85 million portfolio financing facility to be utilised for the refinancing of certain existing aircraft in its fleet.
Avation Chief Executive Jeff Chatfield said: ‘The company is pleased to have closed this profitable sale, which is a further demonstration of the continued strength in the market for ATR turboprop aircraft.
‘Avation is primarily an aircraft operating lessor but was willing to sell this aircraft, in this instance, due to the attractive economics of the transaction.’
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