Business
TRADING UPDATE AND FULL YEAR RESULTS
TRADING UPDATE AND FULL YEAR RESULTS.
About this update from Avation Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 2959B\n Avation PLC\n 09 June 2021\n \n \n \n \n Via RNS and SGXNET \n \n \n AVATION PLC\n \n \n (\"Avation\" or \"the Company\")\n \n \n \n \n \n TRADING UPDATE AND FULL YEAR RESULTS\n \n \n \n \n \n Avation PLC (LSE: AVAP) provides the following trading update including certain balances (unaudited) as at 31 March 2021.\n \n \n \n \n \n Fleet\n \n \n \n \n \n At the date of this announcement, Avation's aircraft fleet totals 45. Avation's fleet is leased to 19 commercial airlines in 15 countries including seven flag carriers.\n \n \n \n \n \n As of 31 March 2021, the weighted average age of the aircraft fleet was 4.8 years, the weighted average remaining lease term was 6.4 years and the total future minimum lease payments receivable under non-cancellable leases was approximately US$749 million. Avation had three unencumbered aircraft in the fleet on 31 March 2021.\n \n \n \n \n \n The Company has a diversified customer base, with the largest customer representing 27% of unearned revenue and the three largest customers (airBaltic, VietJet and EVA Air) representing 61% of unearned revenue.\n \n The leases with each of Avation's top three customers have more than 6 years duration remaining.\n \n \n \n \n \n Avation expects its customer Philippine Airlines (\"PAL\") to enter restructuring in the coming weeks. PAL has proposed to retain the use of a Boeing 777-300ER aircraft on lease from Avation at a lower fixed rent applicable post restructure. The impact of this expected lease rate adjustment on the lease-encumbered value of the aircraft has been accounted for in the financial results for the half-year ended 31 December 2020. \n \n \n \n \n \n As of 31 March 2021, Avation had eight ATR aircraft available for sale or lease following their redelivery due to Virgin Australia Holdings Limited's (\"Virgin Australia\") voluntary administration. Five of the 13 aircraft originally leased to Virgin Australia have already been re-marketed. Avation is actively marketing the remaining eight aircraft and has seen an increase in interest for these aircraft recently, as airlines restart operations as the COVID-19 pandemic recedes. Avation's claim for losses against Virgin Australia is US$73 million. Virgin Australia's administrators have advised an expected dist...