(Alliance News) - Avation PLC on Thursday said it has leased a fifth new ATR 72-600 aircraft to Braathens Regional Airways AB, a Norwegian-owned Swedish airline.
The commercial passenger aircraft leasing company has signed a 10-year lease with Braathens for the aircraft, which will be delivered in March 2020.
The company had previously signed leases for four ATR 72-600 aircraft to be delivered to Braathens between the fourth quarter of 2019 and the end of the first quarter 2020. The first of these aircraft will be delivered in mid-December.
Aviation also said that the Japan Credit Rating Agency Ltd has upgraded the outlook for Avation's foreign currency long-term issuer rating of BB to positive.
Executive Chair Jeff Chatfield said: "We are pleased to establish a fifth aircraft lease with Braathens, an existing client. In our view the aircraft may be eligible for green finance given the efficient nature of the ATR 72-600. We also note the positive outlook on Avation's credit rating from the Japan Credit Rating Agency Ltd. The cost of funds is a key driver of aircraft lessor profitability, and the company constantly seeks to improve its credit rating in order to lower its funding cost."
Avation shares were trading flat at 267.50 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Avation (AVAP)