Avation plc

August 12, 2011 02:00 ET


For immediate release by RNS, AVAP:LSE

Date: 12 August 2011

                                                AVATION PLC
                                              (the "Company")
The  directors of the Company advise that the Company has entered into 10-year loan facility agreements for
up  to  US  $152.2m (in aggregate), principally provided under a mandate to Crédit Agricole  Corporate  and
Investment  Bank.  The loan facilities can be drawn down progressively by the Company  on  an  aircraft  by
aircraft  basis  for  the  purpose  of purchasing a fleet of eight new  ATR72  Aircraft  for  operation  in
Australia.  The  first of these aircraft, an ATR72-500, has been financed and was delivered  new  from  the
factory on the 11th of August 2011.

The  first  aircraft and subsequent aircraft are being leased by the Company to Australian carrier  Skywest
Airlines, who in turn operate the aircraft on behalf of Virgin Australia, under the Virgin Australia brand,
pursuant  to 10-year wet-leases. The operation of the aircraft constitute a part of the Australian Regional
Airline  Network Agreement ("ARAN") between Skywest Airlines and Virgin Australia under which  the  parties
agreed  that  Skywest Airlines will operate up to 18 new aircraft on behalf of Virgin Australia.  Initially
the  first routes serviced will include those of Brisbane to Gladstone, Port Macquarie and also from Sydney
to Canberra.

These transactions are part of those envisaged and described in the Prospectus published by the Company  on
the  25th  of  March  2011.  It should be noted that the loan facilities, with respect to  the  first  four
aircraft,  are  credit insured by the French and Italian export credit agencies.  The  Company  understands
this  is  the  first ATR aircraft ever to be financed under the new 2011 Aircraft Sector  Understanding  on
Export  Credits  for Civil Aviation. In addition to the loan facilities referred to above  the  Company  is
funding the balance of the purchase price of the first aircraft from existing cash resources including  the
proceeds  of  the placing announced on the 9th of March 2011. As the first aircraft has been delivered  the
first lease has now commenced; the generation of revenue from this first aircraft lease under the ARAN  has
begun.  The loan facilities are at a fixed interest rate cost of approximately 5% per annum.   The terms of
the loan facilities, the acquisition of the aircraft and the corresponding wet and operating leases are  as
described in the aforementioned Prospectus

  "We  are  delighted  to  have completed the delivery of the first aircraft to Virgin  Australia  and  the
completion  of  the arrangement for the credit facilities. The overall Australian Regional Airline  Network
Agreement will deliver a significant increase in the size of the aircraft fleet owned by the Company and in
itself  is  a  further step toward the Company achieving its goal of becoming a leading  regional  aircraft
leasing provider." says Avation Plc Chairman, Mr. Jeff Chatfield.

Mr.  Chatfield  went further to say that "the ATR72 series aircraft was selected because  of  a  number  of
factors.  Avation understands that the ATR-72 is highly fuel efficient, for example on a 200 nautical  mile
sector,  the  ATR 72 fuel consumption per passenger is 16% lower than a typical car and 60% better  than  a
typical  regional  jet.  Furthermore the ATR 72-500 emits about 50% less CO2  per  passenger-km  than  new-
generation jets. Compared to a car, the ATR 72-500's CO2 emissions per seat/km on a 200 n.m. sector are 15%


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.

Contact information:

Avation PLC
Jeff Chatfield, Chairman                                                +65 62522077

Financial Public Relations
Bishopsgate Communications
Laura Stevens/Giang Nguyen                                              +44 20 7562 3350

Harry Ansell - WH Ireland, London                                       +44 20 7220 1670

Adviser to the Company
Dr Frank Lucas, Loeb Aron & Co. Ltd., London                            +44 20 7628 1128

Contact Information

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