7 Jan 2010
AVATION PLC
("AVATION" or "THE COMPANY")
CONDITIONAL $7.8M FINANCE AND ACQUISTION OF AIRCRAFT
The Company is pleased to announce that it has entered into a conditional letter of intent to
purchase one Airbus A320-200 aircraft. The aircraft is currently in service in the UK and is at
this time is owned by a reputable international aircraft leasing company.
The Company has paid an initial deposit for the aircraft of US$150,000. The total cost for the
aircraft to enter service is approximately US$11,000,000 with a base purchase price consideration
of US$8,600,000. The Company will pay for the aircraft from its own group cash flows and in
principle has secured interest free vendor finance in respect of US$7,800,000 over a period of
three years.
The Directors are pleased with the offer of finance from the vendor.
The aircraft is being acquired for leasing to Skywest Airlines Limited ("Skywest") who have
commenced technical and commercial due diligence on the aircraft. Upon commencement of a lease
with Skywest a further formal announcement on any operating lease terms and duration will be made.
Notwithstanding the above the Company considers that the aircraft could be readily leased to a
wider range of airlines.
Chairman Jeff Chatfield said "We are pleased to have the opportunity to acquire this aircraft on
very attractive terms to us in strengthening the Company's balance sheet further and broadening
our fleet"
The Directors take responsibility for the contents of this announcement.
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ENQUIRES:
AVATION PLC 07783 942 553
Jeff Chatfield, Chairman
ADVISOR 020 7628 1128
Dr Frank Lucas, Loeb Aron & Company
MEDIA 020 7562 3350
Nick Rome, Will Tindall
Bishopsgate Communications
Avation plc