Avation PLC has just taken another calculated step forward in its strategic growth plan—this time adding a key asset that deepens its ties to a major Middle Eastern airline while reinforcing its leasing portfolio. The move signals confidence not just in the aircraft’s long-term value, but in the strength of Avation’s global relationships and its ability to capitalise on high-value, secondary-market opportunities.
Singapore-based aircraft lessor Avation PLC has secured financing for the acquisition of a 2013-built Airbus A320, currently on long-term lease to Etihad Airways, through a deal supported by Investec Bank plc. The transaction includes an extension of the lease agreement with Etihad, one of the Gulf region’s premier carriers, which will now operate the aircraft through to October 2031. This extension underlines the aircraft’s continuing commercial value and Etihad’s ongoing demand for narrow-body aircraft as it optimises fleet operations.
The move strengthens Avation’s global portfolio, bringing its total number of leased aircraft to 33. With this addition, Avation not only increases its fleet size but also further diversifies its customer base, which now includes 16 airlines across 14 countries. This broad geographic spread is critical in managing risk and capturing upside potential from varied aviation markets recovering at different speeds.
Etihad Airways, headquartered in Abu Dhabi, is widely regarded as one of the most innovative and service-driven carriers in the Middle East. Its ongoing partnership with Avation reflects the latter’s strong reputation as a dependable and agile lessor. As travel demand continues to rebound and airlines seek to fine-tune their fleets with more efficient and reliable aircraft, lessors like Avation stand to benefit significantly from well-structured deals such as this.
The legal advisory role in this transaction was fulfilled by Stephenson Harwood LLP, a firm with a strong track record in aviation finance. The cross-functional team was led by Partner Saugata Mukherjee and included Managing Associate Clement Leung, Associates Bong Yumi and Bryan Liang, and Paralegal Michelle Wong. Their involvement ensured the transaction was executed with precision, balancing regulatory considerations and commercial objectives across multiple jurisdictions.
By tapping into the secondary market for aircraft and securing long-term lease commitments, Avation continues to demonstrate its disciplined approach to fleet growth and capital allocation. This deal, backed by reliable financial partners and structured for long-term operational stability, is a prime example of the company’s ability to execute transactions that align with its strategic priorities.
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.
