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LONDON - Aircraft leasing company Avation PLC (LSE:AVAP) has entered into an agreement to sell a Boeing (NYSE:BA) 777-300ER widebody aircraft currently leased to Philippine Airlines, according to a press release statement.
The transaction is expected to generate a profit above the aircraft’s book value and release approximately $33 million in net cash proceeds after repayment of associated debt finance.
Avation plans to use the proceeds for debt reduction and may reinvest in high-quality narrowbody aircraft in the secondary market, focusing on assets with extended lease terms and creditworthy lessees.
The sale is expected to be completed in the third quarter of 2025, subject to customary closing conditions.
The company noted that asset valuations for widebody aircraft have performed strongly since the end of the COVID pandemic.
"We believe that the market values for modern commercial aircraft are materially higher than our book values and we are experiencing favorable market conditions," said Jeff Chatfield, Executive Chairman of Avation, in the statement.
Chatfield added that while the Boeing 777-300ER has been a valuable investment, the company typically focuses on aircraft types currently in production and decided it was time to divest this asset.
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