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DELIVERY OF FIRST VIRGIN AUSTRALIA AIRCRAFT AND...
DELIVERY OF FIRST VIRGIN AUSTRALIA AIRCRAFT AND....
About this update from Avation Plc
[{"type":"text","content":"\n \n\nFor immediate release by RNS, AVAP:LSE\n\nDate: 12 August 2011\n\n AVATION PLC\n\n (the \"Company\")\n\n DELIVERY OF FIRST VIRGIN AUSTRALIA AIRCRAFT AND $152M FINANCING\n\nThe directors of the Company advise that the Company has entered into 10-year loan facility agreements for\nup to US $152.2m (in aggregate), principally provided under a mandate to Crédit Agricole Corporate and\nInvestment Bank. The loan facilities can be drawn down progressively by the Company on an aircraft by\naircraft basis for the purpose of purchasing a fleet of eight new ATR72 Aircraft for operation in\nAustralia. The first of these aircraft, an ATR72-500, has been financed and was delivered new from the\nfactory on the 11th of August 2011.\n\nThe first aircraft and subsequent aircraft are being leased by the Company to Australian carrier Skywest\nAirlines, who in turn operate the aircraft on behalf of Virgin Australia, under the Virgin Australia brand,\npursuant to 10-year wet-leases. The operation of the aircraft constitute a part of the Australian Regional\nAirline Network Agreement (\"ARAN\") between Skywest Airlines and Virgin Australia under which the parties\nagreed that Skywest Airlines will operate up to 18 new aircraft on behalf of Virgin Australia. Initially\nthe first routes serviced will include those of Brisbane to Gladstone, Port Macquarie and also from Sydney\nto Canberra.\n\nThese transactions are part of those envisaged and described in the Prospectus published by the Company on\nthe 25th of March 2011. It should be noted that the loan facilities, with respect to the first four\naircraft, are credit insured by the French and Italian export credit agencies. The Company understands\nthis is the first ATR aircraft ever to be financed under the new 2011 Aircraft Sector Understanding on\nExport Credits for Civil Aviation. In addition to the loan facilities referred to above the Company is\nfunding the balance of the purchase price of the first aircraft from existing cash resources including the\nproceeds of the placing announced on the 9th of March 2011. As the first aircraft has been delivered the\nfirst lease has now commenced; the generation of revenue from this first aircraft lease under the ARAN has\nbegun. The loan facilities are at a fixed interest rate cost of approximately 5% per annum. The terms of\nthe loan facilities, the...