SINGAPORE – 21 APRIL 2020 - Avation PLC (LSE: AVAP) - the commercial passenger aircraft leasing company provides the following update in the context of the announcement of Virgin Australia Holdings Limited (“Virgin Australia”) announcing voluntary administration.

Avation observes the following in respect of Virgin Australia:

• Virgin Australia remains operating flights.
• The entry into voluntary administration is a procedural step to allow Virgin Australia to be sold or for a “restructure and refinance of the business and bring it out of administration as soon as possible” said the administrator.
• Avation is aware of reports that there are 10 or more interested buyers for Virgin Australia and/or investors and both State and Federal Governments in Australia have made statements about the necessity for a second locally based airline to service Australia with domestic and international routes.
• Avation has 11 ATR 72 aircraft under operating lease to Virgin Australia of these 2 ATR 72 aircraft are subleased to, and operated by, another airline. Avation also provides two Fokker F100 jet aircraft under finance lease.

According to the Administrator the process is likely to take “two to three months”. Avation may provide further announcements as the outcome of the voluntary administration is determined.