Avation Share News (AVAP)

(Sharecast News) - Commercial passenger aircraft leasing company Avation has delivered the first in a series of five new ATR 72-600 turboprop aircraft to Braathens Regional Airways (BRA), it announced on Thursday, at the ATR facility in Toulouse, France.
The London-listed firm said Braathens was its 18th airline customer.

It also said it was advised that it was the first ever commercial aircraft financed with a 'Green Loan', which was provided by Deutsche Bank.

Avation said Vigeo Eiris, a leading institution for environmental, social and governance ratings, had said that the project of replacing aging regional jets with new ATR 72-600 aircraft was aligned with the Loan Market Association's 'Green Loan Principles' guidelines for 2018.

"We express a reasonable assurance - our highest level of assurance - on the borrower's commitments and on the loan's contribution to sustainability," Vigeo Eiris said in its opinion.

That, Avation said, reinforced the environmental benefits of the modern ATR turboprop aircraft, which emitted 40% less carbon dioxide than a comparable regional jet, largely due to its latest generation turboprop engines.

ATR 72 aircraft currently comprised 26 aircraft out of Avation's total fleet of 48 aircraft.

Together with other fuel-efficient and lower carbon aircraft in the fleet, they comprised more than 50% of Avation's overall fleet.

"As a lessor, it is essential for us to progress our fleet into new technology low carbon emission aircraft such as the ATR 72-600 which maintain their value over a long period," said executive chairman Jeff Chatfield.

"BRA's decision to consolidate their own operation around the ATR 72-600 aircraft type demonstrates their understanding of the regional aviation market and the importance of reducing carbon emissions.

"BRA is an airline that is leading the way in terms of striving to offer their passengers the best possible experience, whilst optimising operations and minimising environmental impact."

Chatfield said the company anticipated financing cost improvements as a result of those Green Finance initiatives, as the market developed.

"Avation will be ideally placed due to an improving credit rating outlook and its modern technology, new, fuel efficient and lower carbon aircraft fleet."

At 0826 GMT, shares in Avation were up 0.15% at 268.9p.