Avation clarifies Virgin Australia ATR72 position | News | Airfinance Journal

Avation clarifies Virgin Australia ATR72 position

Singapore-based, London-listed aircraft leasing platform Avation has said its agreements with under-administration Virgin Australia are ongoing.

“The Company advises that it is not aware of any decision to return its remaining five ATR72-600 aircraft that are leased to Virgin. The Company has an agreement with the Administrator so as to ensure that these aircraft are being properly maintained and stored,” said Avation.

“The Company will liaise with Virgin regarding the continued use of the five ATR72-600 aircraft and will provide further updates when appropriate.”

As previously reported, Avation expects its four remaining ATR72-500 aircraft leased to Virgin will be returned. Avation has begun remarketing these aircraft to other customers for lease or sale.

Earlier this week Virgin Australia unveiled plans for its future under new owners Bain Capital.

The Brisbane-headquartered airline will streamline its fleet, moving to an all-Boeing 737 operation and retiring all ATR72, Airbus A330 and 777-300ER aircraft.

It will also scrap budget carrier Tigerair – and that carrier’s A320 fleet – and suspend long-haul international flights until it and the industry recover.

Separately, lessor Avation announced on 5 August that it had repurchased $2.4 million of Avation Capital 6.5% senior notes due 2021 issued under Avation’s global medium-term note programme. The notes were acquired through the market at a price equal to 71% of face value and will be cancelled, said Avation.

In previous months Avation twice repurchased $1m worth of notes.

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