The commercial passenger aircraft leasing company Avation PLC (LSE: AVAP) and the European regional turboprop aircraft manufacturer ATR are pleased to announce the agreement for the purchase of five additional ATR 72-600s. The aircraft purchase, which involves the exercise of five options, is valued at some US$ 120 million, based on catalogue prices. Deliveries of these five firm aircraft will take place in 2015.

It is intended that these five aircraft will be delivered to new and existing leasing customers of Singapore-based Avation PLC. The company is seeing strong continued demand for this aircraft type, which was important in its decision to exercise the purchase options.

Including this new order for aircraft, Avation PLC today has fourteen firm ATR72-600 aircraft to be delivered before the end-2015. As of today, thirteen ATR 72 aircraft have already been delivered on lease. In addition, Avation now has a total of 27 further options remaining to purchase additional aircraft under the agreement.

Commenting, Jeff Chatfield, Executive Chairman of Avation PLC said: “This order for five additional ATR72-600 aircraft is an important growth program for the Company allowing suitable expansion. This order is a demonstration of our commitment to grow the Company’s portfolio with the most modern, efficient and environmentally friendly aircraft available.”

Filippo Bagnato, Chief Executive Officer of ATR, declared: “We are pleased that Avation PLC is booking orders for new ATR aircraft for the third consecutive year. This is for us the major proof of their confidence on the multiple advantages of the ATRs for the development of their regional aviation business, both in Australia and in South East Asia”. He added: “This order clearly consolidates the strong importance of leasing firms also in the market of shorthaul and thin operations. Since 2010, leasing firms represent not only an increasing part of our portfolio of customers and backlog, but also a very dynamic, valuable and flexible solution for regional operators all over the world”.

Alenia Aermacchi press release