Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company announces that it has signed leases with airBaltic for the supply of two Bombardier CS300 aircraft for durations of 12 years each to be acquired new at delivery.

The Latvian airline airBaltic is the world's most punctual airline connecting the Baltic region with over 70 destinations in Europe, the Middle East, and the CIS. Currently the airBaltic fleet consists of 31 aircraft and the company is moving towards a single-type fleet with the progressive introduction of up to 80 units of CS300 aircraft. With a previously announced order, airBaltic has become the largest European Bombardier C Series customer.

The C Series is the only new-technology single-aisle aircraft specifically designed to serve the 100 to 150 seat market. This drives the type's economic efficiency and performance, creating opportunities for small single-aisle operations. The C Series has booked firm purchase agreements for over 400 aircraft to date.

Jeff Chatfield, Executive Chairman, said: "The Company is pleased to welcome airBaltic as a addition to the Company's airline client base. The Company seeks long-term leases and these two 12-year leases align with our strategy. The Company continues to diversify its aircraft portfolio and recognises the importance of new technology single-aisle aircraft such as the CS300 and is appreciative of the progress made by Bombardier to achieve the smooth and successful entry into service of the C Series. Avation has a view that the C Series joint venture with Airbus and Bombardier may increase sales volume of the programme."

Martin Gauss, Chief Executive Officer of airBaltic said: "We are positively impressed with Avation PLC's speed of execution and are delighted to welcome them as one of our valued partners for supporting airBaltic's fleet modernization. With the new order of C Series airBaltic will introduce a single-type fleet of 50 CS300 aircraft with options for additional 30 aircraft for even stronger future growth."

Bombardier commented: "We are pleased to welcome Avation PLC as a new lessor to Bombardier and the C Series programme," said Colin Bole, Senior Vice President, Commercial, Bombardier Commercial Aircraft. "This investment is testament to the quality of the C Series order book and its tremendous value in the small single-aisle market following an exceptional entry-into-service in Europe and Asia. The leasing market seeks aircraft with good lease rate factors, and we are confident that Avation PLC will benefit from the C Series ongoing worldwide momentum."