Business
Letter of Intent Signed
Letter of Intent Signed.
About this update from Avation Plc
[{"type":"text","content":"\n \n\n 7 Jan 2010\n\n AVATION PLC\n (\"AVATION\" or \"THE COMPANY\")\n\n CONDITIONAL $7.8M FINANCE AND ACQUISTION OF AIRCRAFT\n\nThe Company is pleased to announce that it has entered into a conditional letter of intent to\npurchase one Airbus A320-200 aircraft. The aircraft is currently in service in the UK and is at\nthis time is owned by a reputable international aircraft leasing company.\n\nThe Company has paid an initial deposit for the aircraft of US$150,000. The total cost for the\naircraft to enter service is approximately US$11,000,000 with a base purchase price consideration\nof US$8,600,000. The Company will pay for the aircraft from its own group cash flows and in\nprinciple has secured interest free vendor finance in respect of US$7,800,000 over a period of\nthree years.\n\nThe Directors are pleased with the offer of finance from the vendor.\n\nThe aircraft is being acquired for leasing to Skywest Airlines Limited (\"Skywest\") who have\ncommenced technical and commercial due diligence on the aircraft. Upon commencement of a lease\nwith Skywest a further formal announcement on any operating lease terms and duration will be made.\nNotwithstanding the above the Company considers that the aircraft could be readily leased to a\nwider range of airlines.\n\nChairman Jeff Chatfield said \"We are pleased to have the opportunity to acquire this aircraft on\nvery attractive terms to us in strengthening the Company's balance sheet further and broadening\nour fleet\"\n\nThe Directors take responsibility for the contents of this announcement.\n\n ---ENDS---\n\nENQUIRES:\n\nAVATION PLC 07783 942 553\nJeff Chatfield, Chairman\n\nADVISOR 020 7628 1128\nDr Frank Lucas, Loeb Aron & Company\n\nMEDIA 020 7562 3350\nNick Rome, Will Tindall\nBishopsgate Communications\n\nAvation plc\t\t\t\t\t\t\t\t\n\n\t\t\t\t\t\t \n ","length":2269,"tagName":"div"}]