Avation Secures Long-Term Lease Deal as It Lands in South America for the First Time
Avation PLC is planting its flag in a new territory. With a strategic move into South America, the aircraft leasing company has sealed a significant deal that hints at broader ambitions and market expansion. Investors should take note as this marks more than just a lease—it’s a sign of targeted global growth.
Avation PLC has signed a six-year lease agreement with Clic Air SA, a Colombian regional airline, for one of its ATR 72-600 aircraft. This marks Avation’s official entry into the South American market—an area of significant potential for regional aviation leasing. The aircraft, which is currently in the process of being returned by its previous operator, will undergo routine maintenance and inspections before being handed over to Clic Air in the coming weeks.
This agreement is more than just a routine lease. For Avation, it represents a deliberate step into a fast-growing market where regional connectivity remains a vital component of economic development. Colombia, with its diverse geography and increasing demand for efficient domestic travel, provides a strategic starting point for Avation’s ambitions in Latin America. The ATR 72-600, known for its fuel efficiency and performance in short-haul routes, aligns well with the operational needs of carriers like Clic Air that serve regional hubs and remote destinations.
Jeff Chatfield, Executive Chairman of Avation, described the lease as a pivotal milestone in the company’s ongoing growth story. His comments underscore the significance of the deal not just as a transaction, but as a strategic foothold in a promising region. The addition of Clic Air as a customer further diversifies Avation’s operator base and extends its global footprint, reinforcing its position as a nimble and responsive player in the aircraft leasing sector.
The deal also highlights Avation’s strong asset management capabilities. Rather than letting an aircraft remain idle following its return from a previous operator, the company has quickly repositioned it with a new lessee, demonstrating operational agility and proactive leasing strategy. For investors, this speaks to efficient capital deployment and potential for steady lease revenue in a new market.
Looking ahead, Avation’s entry into South America could signal a broader regional strategy. The continent is home to several underserved air travel markets where demand is growing, particularly in the wake of pandemic recovery and infrastructure development. By placing its first aircraft in Colombia, Avation may be laying the groundwork for further expansion across neighbouring countries.
Avation PLC (LON:AVAP) is a commercial passenger aircraft leasing company owning a fleet of aircraft which it leases to airlines across the world. Avation’s future focus are new technology low CO2 emission aircraft.
