Avation PLC Announces Sale of Two ATR 72-600 Aircraft

Avation PLC, the aircraft leaser based in Singapore, has announced the sale of two ATR 72-600 aircraft to an airline client. The transaction involves the next two new deliveries from the manufacturer as part of a sale and purchase agreement. This move follows a prior exercise of purchase rights under Avation's long-term contract with ATR.

The aircraft sale, scheduled for Q4 of 2024 and Q1 of 2025, is contingent upon customary conditions and will complete on the respective delivery days. Avation has already received two cash deposits from the airline. With this sale, Avation will have ten more ATR 72-600s due for delivery between late 2025 and 2028, with additional purchase rights for 24 more aircraft up to June 2034.

Jeff Chatfield, Executive Chairman at Avation, emphasized that while the company generally prefers operating leases, selling the aircraft was financially advantageous. The sale, expected to generate over $10 million in net cash proceeds, will fund pre-delivery payments for upcoming orders. Chatfield also highlighted the growing demand for ATR 72-600s in the Americas, noting the aircraft's low operating costs and minimal carbon emissions.