Business
AGM Statement
AGM Statement.
About this update from Avation Plc
[{"type":"text","content":"\n\nVia RNS and SGXNET\nAVATION PLC\n(\"Avation\" or \"the Company\")\n \nCHAIRMAN'S AGM STATEMENT\n \nAvation PLC (LSE: AVAP), the commercial passenger aircraft leasing company, will hold its Annual General Meeting today in Singapore which will include the following Chairman's Statement. The purpose of this statement is to provide investors with an update on current operations.\n \nMarket\nIn its most recent air passenger market analysis report IATA noted continued strength in air travel with revenue passenger kilometres (\"RPKs\") increasing 30.1% in the year to September 2023. Total market RPKs are now around 97% of pre-COVID levels comparing September 2023 to the same month in 2019.\n \nMarket values for aircraft have continued to recover and Avation believes that values of popular new narrowbody aircraft types have increased by 10-15% since January 2022.\n \nFleet Update\nAs at 23 November 2023 Avation owns a fleet of 35 aircraft leased to 15 airlines in 13 countries. The average age of the fleet is 6.7 years, and the average remaining lease term is 4.9 years. The earliest lease expiry date is September 2024.\n \nThree aircraft are currently in transition, with one ATR 72-600 aircraft expected to be sold, and with an ATR 72-600 and an Airbus A320 expected to start new leases in the coming weeks. Since 30 June 2023 Avation has sold a twelve-year old ATR 72-500 aircraft which was repossessed from an airline in India which was in default under the lease agreement.\n \nIn responding to an analyst question, the Company advised that has no exposure on its A320 / A321 fleet to technical problems associated with the Geared Turbo Fan engine recall.\n \nStrategic and Finance Update\nAvation has continued to make progress with collections of rent and maintenance arrears. Total arrears have reduced by around US$ 6.3 million since 30 June 2023. The company's management remains highly focussed on collections of the remaining arrears balances. Furthermore, the company expects to receive a final distribution from the administrator of Virgin Australia of around AU$ 1.0 million in December.\n \nTotal cash and bank balances have increased by US$ 23.8 million since 30 June 2023 to US$ 140.7 million at the current date. The company will look for opportunities to refinance exis...