Avation plc

January 26, 2012 02:00 ET

Acquisition of two further aircraft and lease to Virgin Australia


                                                                                       26 January 2012
                                              AVATION PLC
                                           (the "'Company')
                   Acquisition of two further aircraft and lease to Virgin Australia
Avation PLC is pleased to announce that it has entered into an agreement to acquire, an additional two
new ATR72-500 aircraft.

These  aircraft  will  be  leased by the Company to Australian carrier Skywest  Airlines,  which  will
operate the aircraft on behalf of Virgin Australia, pursuant to a 10-year wet-lease contract.  The two
airlines and the Company are making arrangements to take delivery of the new aircraft forthwith. It is
anticipated that the leases will both commence within fourteen days of the date of this announcement.

The operation of these aircraft constitutes a part of the Australian Regional Airline Network ("ARAN")
Agreement  between Skywest Airlines and Virgin Australia, under which, the parties  have  agreed  that
Skywest  Airlines will operate a fleet of Aircraft on regional Australian routes on behalf  of  Virgin
Australia  and  branded  in  the  Virgin Australia brand.  These two aircraft  are  to  be  leased  as
additional  aircraft  to  the previously announced delivery stream. The acquisition  costs  have  been
funded  by  a combination of internal funds and finance lease from the vendor. These two aircraft  are
new  and  additional to the Company's previously announced firm and option orders direct with the  ATR

Jeff Chatfield, Chairman, Avation PLC commented:

"We are delighted to have expanded our portfolio with the opportunistic acquisition of these two new
additional  aircraft  and to have acquired this using internal funding. These aircraft  add  to  those
scheduled for firm delivery from ATR over the course of the next few years, further demonstrating  the
Company's strategy to build a significant portfolio of these aircraft."


                      Information on AVATION PLC can be found at www.avation.net
     Avation PLC is registered in England and Wales with an Operational Headquarters in Singapore.

Avation PLC
Jeff Chatfield, Executive Chairman                        +44 7783 942 553

Financial Public Relations
Bishopsgate Communications
Nick Rome/Shabnam Bashir                                 +44 207 562 3350


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