By Michael Susin
Avation PLC said Tuesday that it is optimistic about the long-term opportunity for air travel, particularly in new technology low carbon dioxide emission aircraft, and that it intends to return to growth through opportunistic aircraft acquisitions and deliveries from its orderbook.
The commercial passenger aircraft leasing company added that it is positioned for a return to fleet growth supported by aircraft sales, collections of receivables and the insolvency proceedings of Virgin Australia.
The company added that cashflow from operations is expected to improve as the return-to-normal trading conditions continues as airlines return to full service, and that it has received an initial distribution of 5.5 million Australian dollars ($3.7 million) from the insolvency of Virgin Australia in September 2022.
“While the return to flying has been embraced by passengers and airlines Avation notes that there is still significant disruption in respect of aircraft servicing and repair as workshops continue to be impacted by reduced personnel levels and the rebuilding of workforces,” the company said.
“This has resulted in delays to the service, repair and movement of aircraft being sold or transitioned by Avation. The company expects that these services will gradually improve to pre-Covid levels during 2023. Debtor collection remains a key focus and Avation works closely with airlines to ensure operational cashflow is maintained,” it added .
Write to Michael Susin at michael.susin@wsj.com
Avation Sees Return to Growth Through Aircraft Acquisitions
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