Company Profile


Commercial passenger aircraft leasing specialists

Avation PLC is a commercial passenger aircraft leasing company that was incorporated in England and Wales in 2006 and whose shares are traded on the Main Market of the London Stock Exchange (LSE: AVAP).

Avation owns and manages a fleet of aircraft which it leases, through its subsidiaries, to airlines across the world. Our customers include Virgin Australia, Thomas Cook, Condor, Air France, Air Berlin, Vietjet Air, Fiji Airways and UNI Air. The company’s fleet includes Airbus A320 family aircraft as well as Fokker 100s and ATR 72s.

Specialist management team

Avation’s management team has extensive experience in all areas of the aviation industry and has the expertise to select aircraft to bring under Avation’s management that will deliver value to the company, performance to its customers and returns to its shareholders.

Financial Growth

Coinciding with the expected delivery of the ATR 72s and potential acquisitions of other aircraft, Avation will continue to grow in terms of the size and quality of its managed fleet and the financial returns it generates.


http://www.avation.net/

It goes down on approx 30,000 shares traded pathetic isn't it .

New Client for Four New Aircraft
RNS
RNS Number : 5387F
Avation PLC
23 February 2015



LSE: AVAP

23 February 2015

AVATION PLC

(the 'Company')

NEW CLIENT FOR FOUR NEW AIRCRAFT

Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, has entered into lease agreements for four new aircraft to be operated by UK commercial airline Flybe.

The four new ATR72-600 aircraft will be progressively delivered new to Flybe during the course of 2015 and early 2016. The lease rate revenues are consistent with operating leases of this type and term. The initial duration of the leases is six years with the client having further optional six year extension provisions.

The Company owns a significant number of option delivery positions on new ATR72-600 aircraft. The above aircraft represent three of the 2015 option delivery positions and one 2016 delivery position.

To provide a platform for further medium term growth the Company has firmed up its options with the manufacturer ATR for the delivery of five additional new ATR72-600 aircraft in 2016.

Jeff Chatfield, Executive Chairman of Avation PLC, said: "It is pleasing to continue to diversify the airline operator base of aircraft owned by the Company with the addition of Flybe. It is understood that the aircraft will remain on the UK register however they will be operated by Flybe in Scandinavia on behalf of Scandinavian Airlines System. Our strategy is to diversify our risk by geographic dispersion of our aircraft fleet and entering into these operating leases are consistent with that objective. The Company has a large proportion of its aircraft in Asia - Pacific and will continue to seek clients in this region, however, the Company views leasing aircraft to Northern Europe provides appropriate diversification."

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About Flybe

Flybe, Europe's largest regional airline - 192 routes serving 12 countries from 82 departure points, 37 UK/45 European airports* (all routes on sale Feb '15 - Oct '15); operates more UK domestic flights than any other airline (UK CAA Jan '14 - Dec'14); named top UK airline for punctuality in report issued by UK consumer watchdog Which? (Dec 2014); is the largest scheduled airline by air traffic movements at Belfast City, Birmingham, East Midlands, Exeter, Inverness, Isle of Man, Jersey, Leeds Bradford, Manchester, Newquay and Southampton airports (UK CAA Dec '14); operates fleet of 60 aircraft - 45 Bombardier Q400, 4 Embraer 195 & 11 E175; codeshares with BA, Air France, Etihad, KLM, Finnair, Aer Lingus and Cathay Pacific; has two franchise partners, Loganair and Stobart Air and was Amsterdam Schiphol's Airline of the Year 2012 Europe.

* Flown under the Flybe brand (27 routes/11 airports exclusively served by Flybe's franchise partner, Loganair: and four routes and three airports exclusively operated by franchise partner, Stobart Air)

Today ST of IC has a price target of 200p.

Second ATR72-600 Delivery to Air India Regional
RNS
RNS Number : 0239G
Avation PLC
27 February 2015



AVAP



27 February 2015

AVATION PLC

('Avation' or 'the Company')



SECOND ATR72-600 DELIVERY TO AIR INDIA REGIONAL



The Directors of Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announce that the Company has taken delivery of another new ATR 72-600 aircraft from the factory in France and that the aircraft has been delivered to Airline Allied Services Limited, otherwise known as Air India Regional, the domestic airline arm of Air India, the national carrier of India.



The lease is for an initial term is 12 years. This is the second ATR72-600 that the Company has delivered to Air India Regional and it joins the first aircraft delivered by the Company in December 2014. This delivery is the Company's twenty-second new ATR 72 aircraft delivered to date.



Commenting today, Jeff Chatfield, Executive Chairman of Avation, said: "We are happy to fulfil this order from Air India Regional and to purchase another new ATR72 aircraft. It is pleasing to be the lead lessor in Air India Regional's fleet renewal program. Air India Regional was a new customer in a new geographical region for the Company, diversifying the Company's portfolio and we are pleased to be leasing to India's national carrier."



---ENDS---

USD24m PDP financing facility
RNS
RNS Number : 3028G
Avation PLC
03 March 2015

AVAP: LSE March 3, 2015



AVATION PLC

("AVAP" or "the Company")



US$ 24m PDP financing facility for two new Airbus A321-200's for 2016 deliveries

Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that it has been successful in securing a $16m Pre Delivery Payment "PDP" finance facility from a major European Bank. The use of funds is to finance PDPs for two new Airbus A321-200'S which will be delivered in February and March 2016.

Salient terms of the transactions include:

· The first PDP financing program conducted by the Company;

· The Company has already invested US$ 8.2m in the aircraft transaction;

· A further additional US$ 16m PDP facility has been provided by major European Bank; and

· The aircraft will be leased to Thomas Cook for a period of 12 years.

The Company has entered into a Sale and Leaseback transaction with Thomas Cook for the purchase of the aircraft new at delivery in Feb / March 2016 and the lease of these aircraft to Thomas Cook for 12 years.

Jeff Chatfield, Executive Chairman, said: "We continually seek to acquire aircraft with a wide range of finance solutions. The establishment of the PDP finance program provided by the company with the assistance of a major European Bank, is another important step in the group's fleet expansion program."



-ENDS-

COMPLETION OF CONDITIONAL SALE OF AIRCRAFT
RNS
RNS Number : 4858K
Avation PLC
17 April 2015

RNS: AVAP

17 April 2015



AVATION PLC

(the "Company")



COMPLETION OF CONDITIONAL SALE OF AIRCRAFT



Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, announces that, further to the announcement made on 13 February 2015, it has now completed the sale of one of the ATR 72-600 aircraft.



A further announcement will be made once the second conditional sale is completed which is expected in the next two months.







-ENDS-

Avation flying high and primed to soar further

By Ian Lyall

April 28 2015, 3:44pm
Avation has a very specific niche – single aisle, twin engine planes such as the Airbus 320 and the French-Italian ATR 72 600, used by 75% of the world’s carriers for short-haul trips. The latter makes up two-thirds of the company’s fleet.
Avation has a very specific niche – single aisle, twin engine planes such as the Airbus 320 and the French-Italian ATR 72 600, used by 75% of the world’s carriers for short-haul trips. The latter makes up two-thirds of the company’s fleet.


The next time you are in a busy departure lounge peering out onto the tarmac, waiting for your flight, bear this tiny pearl of wisdom in mind.

Only half the planes pulling in and out of the stands are owned by the companies whose corporate colours they sport.

The other 50% are supplied by aircraft leasing firms, such as Avation (LON:AVAP), experts in sourcing and financing the work-horses of the sky.

Without these firms the industry would be grounded. For even the big firms, flag fliers such as British Airways owner IAG, need a little help marshalling their assets effectively.

Avation has a very specific niche – single aisle, twin engine planes such as the Airbus 320 and the French-Italian ATR 72 600, used by 75% of the world’s carriers for short-haul trips. The latter makes up two-thirds of the company’s fleet.

Aircraft leasing is on the face of it a reasonably simple business.

Companies such as Avation, and its American rivals Airlease, Aircastle and Avolon, will acquire an aircraft then lease it on – the airline will then take care of all the maintenance.

The skill comes in sourcing the finance, the right aircraft and mitigating the risks involved with the transaction.

The ATR72-600 – a modest twin prop plane that seats 72 – in round numbers, comes in at US$20mln. An Airbus A320 will set you back a tasty US$45mln.

So, if you botch any part of the lease or financing of the deal, you are, as they like to say in London’s East End, in big shtuck.

That Avation has done 29 lease deals with firms such as Virgin Australia, Flybe and Thomas Cook Airlines means it has more than a degree of competence in this arena.

The model, when stripped down, is a little like the template used by property firms.

Avation finances its acquisitions using 75% senior, secured bank debt. A typical plane might be leased on the basis of repaying back to Avation around 144% of the acquisition price over the 12 years of a contract.

They can then be leased out for another 12 years, albeit at lower rate than a brand-spanking-new airliner.

Somewhat counter-intuitively though (and a quirk of depreciation rates versus lease income), the older models yield more than the new inventory.

The sums involved are massive. Even with a modest portfolio the amount of debt Avation has taken on board is eye-watering for a company capitalised at US$115mln, standing at US$330mln. That said, its portfolio is worth over US$500mln.

The average rate of interest paid on the debt is 4.6%, the interim results revealed, down from 5.5% a year earlier.

Avation mitigates the risk posed by a sharp rise in interest rates by borrowing over the term of the lease, rather than over two or three years and constantly refinancing. That way it always knows it will receive more in lease payments than it shells out to the banks.

The banks, meanwhile, are keen to finance leasing deals because a new plane appreciates in value when it is leased out.

So, an ATR 72-600 worth US$20mln might have a net present value of US$25mln once it starts generating a monthly lease fee due to the value of the income stream associated with the lease.

This also has a flattering impact on the bank’s balance sheet and provides an incentive to finance more of these leasing deals.

Now, if your brain is whirring a little at this point, as mine was when I spoke to Avation’s finance director Richard Wolanski, consider this: for the last three to four years his company has been growing at 30% plus annually and has announced contracts that will grow the company by 40% over the next 12 months.

Not just that, the after-tax profit margin is 25% - so it isn’t sacrificing margins in return for growth.

The stock has doubled in value over 24 months as management, led by executive chairman Jeff Chatfield, has delivered.

The plan is to add another 12 planes to its portfolio in the next two years and double its size within about 3 years.

“The beauty of aviation finance is you apply the business model to one plane and you can roll it out to 200 planes. It works exactly the same,” says Wolanski.

“All we are doing is repeating the same thing. We have done it 29 times now.”

It is interesting that even after the sharp rise in the share price in the past two years, the stock is valued at just 6-7 times earnings, where its rivals are valued at 12-15 times.

Avation also trades at a discount to net asset value,where its American quoted peers are usually valued at closer to 1.5 times NAV.

So, whichever way you cut it, there is potential for growth either organically, as Avation adds to its portfolio, or via a stock re-rating.

The broker WH Ireland is predicting revenues of US$58mln this year, rising to US$70.5mln next year and then to US$88.7mln in 2017, giving pre-tax profits of US$17.1mln, US$23.6mln and US$31.2mln respectively.

Domiciled in Singapore, its results will benefit for the next five years from the 10% tax rate paid by certain foreign businesses that locate in the city state.

The broker reckons the stock, currently changing hands for 140p each, is worth 206p.

Wolanski said: “That’s what’s exciting about the company; we have locked in so much future growth and almost eliminated all of the execution risk associated with that growth.”

SMALL-CAP-SHARE-IDEAS-Aircraft-leasing-firm-Avation-set-fly-higher-thanks-new-contractsl

Have it reached the bottom for the moment being?

directors are buying

Director Deals - Avation Plc (AVAP)
on 1 June 2015, Epsom Assets Ltd, a company in which Jeff Chatfield, Chairman of the Company, has an interest, bought 30,000 ordinary shares of 1p each in the Company ("Shares") at a price of 137.5p and 50,000 Shares at 140p.

On the same day, Richard Wolanski, Finance Director of the Company, purchased 10,000 Shares at 137.5p.

LEASE OF AIRCRAFT TO FLYBE & 2015 AIRCRAFT PLACED
RNS
RNS Number : 4433R
Avation PLC
29 June 2015

29 June 2015



AVATION PLC

("AVAP" or "the Company")



LEASE OF AIRCRAFT TO FLYBE AND ALL 2015 AIRCRAFT PLACED

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces that it has signed a lease to supply an additional new ATR72-500 to Flybe PLC (Flybe), the UK based regional carrier. The aircraft, which will be delivered toward the end of 2015 represents the fifth new ATR 72-600 aircraft placed with Flybe. All five aircraft will be operated by Flybe, on behalf of Scandinavian Airlines (SAS), under a while label arrangement for a period of six or more years.

This lease is at typical lease rates and is for a term of six years with an option for a further six years.

Following the lease of this aircraft, Avation has placed all of its committed 2015 new aircraft deliveries.

Jeff Chatfield, Executive Chairman, said: "We are pleased to announce this contract for the lease of a fifth aircraft to Flybe, which further strengthens our partnership. We look forward to initiating the delivery stream to Flybe, which is scheduled to commence in September 2015. The Company is also evaluating the potential acquisition of a number of existing aircraft, which are currently on lease to a variety of other airlines."

Flybe CEO Saad Hammad said: "Flybe has established a strong relationship with Avation PLC. This helped to secure the new contract for a fifth ATR 72-600 aircraft for expanding our white label relationship with SAS, Scandinavia's largest airline. We are focused on delivering a first class implementation at SAS when we launch operations in Stockholm for them later this year."

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AVATION TO PURCHASE A320 ON LEASE TO AIR FRANCE
RNS
RNS Number : 4153V
Avation PLC
07 August 2015

AVAP: LSE by RNS; SGX NET 7 Aug 2015



AVATION PLC

("AVAP" or "the Company")



AVATION TO PURCHASE A320 ON LEASE TO AIR FRANCE

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces that it has signed an agreement with Dublin-based aircraft lessor, Avolon, to purchase an A320-200 aircraft, which is operated by and is on lease to Air France.

The acquisition of this Airbus A320-200 aircraft, with engine type CFM56-5B4, is only subject to technical due diligence and execution of the lease novation by AVAP, the airline and vendor. The purchase of the six years old aircraft is being conducted on typical commercial terms. The company expects an economic closing of the acquisition during the current financial period.

The Airbus A320 is in widespread use around the globe and is one of the most popular single-aisle aircraft in airline service with passengers, airlines and leasing companies alike. Since the delivery of the first Airbus A320 in 1988, Airbus has sold a total of 4,773 (i).

Air France has an extensive fleet of around 129 A320 family aircraft which are operated on the airline's extensive network around Europe. Air France currently carries 54 million passengers a year with some 670 flights per day (ii).

Following the completion of this acquisition, Avation PLC will own six aircraft from the A320 family.

Jeff Chatfield, Executive Chairman, said: "I am pleased to announce this contract for the purchase of another A320-200 aircraft. The aircraft is on lease to Air France, one of the world's most prestigious airlines. The Company is focussing on pursuing a strategy involving diversifying the airline customer base and geographical dispersion and the addition of this aircraft meets these criteria. The Company is further evaluating the potential acquisitions of a number of additional aircraft that are currently in-service with other airlines to continue our growth trajectory."

- ENDS -

AVATION COMPLETES SALE OF ATR 72
RNS
RNS Number : 1410W
Avation PLC
14 August 2015

14th August 2015



AVATION PLC

("AVAP" or "the Company")



AVATION COMPLETES SALE OF ATR 72

Avation PLC (LSE: AVAP), the commercial aircraft leasing company, has today completed the sale of a previously announced disposal of an ATR 72-600 aircraft.



This transaction completes the conditional sale of two aircraft which were announced on the 13th February 2015 and represents the completion of the sale of the second of the two aircraft, the first of which was announced as completed on the 18th April 2015. The sales price is consistent with current market values. The Company's portfolio of aircraft remains unchanged at 29 aircraft, all of which are on lease to commercial airlines.



- ENDS -

Unaudited preliminary results

ST of IC - On a bid-offer spread of 123p to 127p, I rate Avation’s shares a medium-term buy offering significant upside potential.

avation-set-to-enter-largest-growth-phase-says-finance-chief

FIRST FLYBE AIRCRAFT DELIVERY
RNS
RNS Number : 3365Z
Avation PLC
17 September 2015

LSE: AVAP

17 September 2015

AVATION PLC

(the 'Company')

FIRST FLYBE AIRCRAFT DELIVERY

Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, has delivered into operation a new ATR72-600 aircraft to be operated by UK commercial airline Flybe.

The delivery is the first of a series of new ATR72-600 aircraft which will be progressively delivered new to Flybe during the course of 2015 and early 2016. This arrangement was initially announced on the 23rd of February 2015. The lease rate and terms are typical for leases of this type: the initial duration of the leases is six years with the client options for further term extensions.

Avation Plc Executive Chairman, Jeff Chatfield said: "We are satisfied with the financial outcome of owning over 20 ATRs we have flying today in the liveries of several airlines in a variety of countries and environments. We are pleased to be associated with two major European aviation operators like Flybe and SAS, and we are confident that the introduction of these new ATR 72 -600s may bring us additional opportunities to place additional new ATRs in Europe as airlines start replacing their earlier generation aircraft."

COMPLETION OF PURCHASE A320 ON LEASE TO AIR FRANCE
RNS
RNS Number : 5919Z
Avation PLC
21 September 2015

21 September 2015



AVATION PLC

("AVAP" or "the Company")

COMPLETION OF PURCHASE A320 ON LEASE TO AIR FRANCE

Avation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, announces that it has completed the purchase of an Airbus A320-200 on lease to Air France that was initially announced on 7 August 2015.

The aircraft was acquired from another aircraft leasing company. The aircraft is four years old and the purchase is being conducted on typical commercial terms. This A320-200 delivery brings the number of A320 "family" aircraft owned by the Avation PLC group to six aircraft.

Jeff Chatfield, Executive Chairman, said:

"We are pleased to take ownership of this A320-200 on lease to Air France, one of the world's most prestigious airlines. The Company is executing its strategy of building the portfolio, diversifying the airline customer base and the addition of this aircraft meets those criteria. On a case by case basis, provided it makes economic sense, Avation is willing to purchase aircraft from other aircraft lessors, manufacturers as well as airlines in sale and lease back transactions. Avation would like to thank all the parties involved for their speedy transaction execution."



- ENDS -

SECOND FLYBE AIRCRAFT DELIVERY
RNS
RNS Number : 8691B
Avation PLC
12 October 2015

LSE: AVAP

9 October 2015

AVATION PLC

('Avation' and the 'Company')

SECOND FLYBE AIRCRAFT DELIVERY

Avation PLC, (LSE: AVAP) the commercial passenger aircraft leasing company, is pleased to announce that it has delivered into operation a second new ATR 72-600 aircraft to the UK commercial airline Flybe.

This delivery is the second of a series of five new ATR 72-600 aircraft which will be progressively delivered to Flybe during the course of 2015 and early 2016. The aircraft is in the livery of Scandinavian Airlines (SAS) and will be operated by Flybe for SAS under an operational contract arrangement called the "white label" project. The lease rate and terms are typical for leases of this type; the initial duration of all leases is six years and the client has options for lease term extensions.

Avation understands that it is the second largest ATR lessor worldwide, in terms of firm orders. This aircraft overall is the 25th ATR 72 aircraft that Avation has taken delivery of since 2011.

Avation's Executive Chairman, Jeff Chatfield said: "We are pleased to be able to deliver promptly this second ATR 72-600 aircraft to Flybe and SAS. We believe the ATR 72-600 to be an ideal aircraft type for the shorter regional routes of Europe, due to the fact that it has the lowest fuel burn and overall operating cost economics in its class."

http://www.rns-pdf.londonstockexchange.com/rns/8691B_-2015-10-9.pdf


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ST of IC today - On a bid-offer spread of 145p to 148p, I continue to rate Avation’s shares a medium-term buy offering potentially 35 per cent upside to my 200p target price.

Proactive investor -

Capital Lease Aviation set to de-list from AIM



11:11 16 Oct 2015

Capital Lease Aviation is a subsidiary of plane leasing firm Avation

Capital Lease Aviation set to de-list from AIM

WH Ireland expects Avation to buy the remaining stake next year


Capital Lease Aviation (LON:CLA) is to de-list from AIM subject to AGM approval.

The company is a subsidiary of plane leasing firm Avation (LON:AVAP), which has progressively increased its stake to about 97% from 62% over the last 18 months.

“The rationale for the delisting is to reduce costs which have become disproportionate in relation to the free float,” broker WH Ireland said.

It added that it expects Avation to buy Capital Lease outright sometime in the next year.

“The move may in due course enable Avation to present a more transparent picture to investors and bondholders thus allowing better access to the markets as it continues along its steady growth trajectory”.

Shares in Capital Lease dropped 16% to 19.6p while Avation nudged 2.4% lower to 143p.