Avation (LSE:AVAP) has delivered the first of two ATR 72-600 aircraft being transitioned to Finnair, with the lease term now underway.
The London and Singapore-listed aircraft leasing company owns both aircraft outright and is leasing them to Finnair for six years each.
Delivery of the second aircraft is scheduled for September, following on from Avation's announcement on 8 July.
Jeff Chatfield, Executive Chairman of Avation, said the deal deepens ties with "Finland's flag carrier and one of the world's most established airlines", a member of the oneworld Alliance.
The transition reflects Avation's practice of remarketing aircraft returned by, or requiring reallocation from, existing lessees.
Chatfield said the company runs "a careful and broad marketing process to identify suitable opportunities with a diversified range of lessees" whenever such aircraft become available.
The second ATR 72-600 delivery to Finnair is expected in September.
News Intelligence what this means for the company
Avation has delivered the first of two ATR 72-600 aircraft to Finnair under a six-year lease, with the second due in September. The deal marks execution of the two-aircraft lease announced on 8 July and maintains the company's 100% fleet utilisation; unearned contracted lease revenue stands at approximately $321 million across a 33-aircraft fleet leased to 17 airlines.
The delivery confirms Avation's ability to execute lease placements and maintain full fleet utilisation, but the transaction itself was already announced and priced into guidance. The company's investment case turns on its ability to deploy its 13-aircraft firm orderbook (deliveries through Q4 2029) into profitable leases and manage refinancing risk on $300 million of 8.5% Senior Notes maturing in 2031.
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