Avation PLC (AVAP: LSE), the commercial passenger aircraft leasing company, announces that it has entered into a conditional sale and purchase agreement for the sale of one 23- month old A321-200 aircraft to an Asian buyer.

The sale and purchase agreement is conditional upon the novation of the lease to the buyer and other usual conditions to closing. The transaction is expected to close in October 2018. The sale is at approximate current market value (“CMV”) for an aircraft of this type and age.

Jeff Chatfield, Executive Chairman, commented: “We are selling this aircraft purely for risk management and portfolio diversification reasons. The sale is in order to reduce financial exposure to one operator and jurisdiction. The sale is being conducted in line with market conditions, at a price around CMV, albeit that Avation’s book value for the aircraft is materially lower than CMV due to an advantageous initial purchase.”