Avation PLC Secures Long-Term Leases with Finnair for Two ATR 72-600 Aircraft

Avation-Finnair ATR 72-600 lease deal looks like a tidy win after a customer restructuring

Avation has announced two new long-term leases with Finnair for ATR 72-600 aircraft that it already owns. Both leases run for six years, with start dates scheduled for July 2026 and September 2026, after the aircraft transition from a previous lessee involved in debt restructuring.

For retail investors, the short version is this: Avation has managed to move two aircraft from a troubled airline situation into fresh leases with a well-known European flag carrier. That is exactly what you want to see from an aircraft lessor – keeping planes employed and cash-generating rather than sitting idle.

Key numbers from the Avation RNS announcement

Item | Detail
Aircraft | 2 ATR 72-600
New customer | Finnair
Lease term | 6 years each
Lease commencement | July 2026 and September 2026
Aircraft source | Transitioned from a previous lessee in debt restructuring
Additional commercial update | 24-month lease letter of intent for 1 ATR72 engine with a new airline client
Financial terms | Not disclosed

What Avation actually announced – and why the Finnair angle matters

The headline item is straightforward. Avation has signed Finnair as a new customer and placed two ATR 72-600 regional aircraft on six-year leases.

That matters for two reasons. First, Finnair is a recognisable airline name and the flag carrier of Finland. Second, Avation is not just extending an existing relationship – it is broadening its customer base, which helps reduce reliance on any one airline.

Management also pointed out that Finnair is a member of the oneworld alliance. On its own, that does not guarantee anything financially, but it does underline that this is an established operator rather than an obscure startup airline.

Aircraft transition from a restructured lessee shows Avation can keep assets working

The most interesting part of this RNS is not just the new customer. It is the fact that these aircraft are coming off lease from a previous lessee that was going through debt restructuring and are being placed back out on fresh terms.

That is a practical test of an aircraft leasing business model. When an airline customer gets into trouble, the lessor needs to recover the asset, reposition it, and find another airline willing to take it. Avation appears to have done that here, and done it on six-year contracts rather than a short stopgap arrangement.

In plain English, that suggests the aircraft remain marketable. It also suggests the ATR 72-600 is still in decent demand in the secondary market, meaning the market for used aircraft rather than new deliveries direct from the manufacturer.

Why Avation’s ATR 72-600 demand comments are encouraging for shareholders

Executive Chairman Jeff Chatfield said the company is seeing a noticeable uptick in the regional aircraft market and demand for second-hand ATR72-600 aircraft. If that view holds up, it is a positive read-through not just for these two planes, but potentially for the wider value and leaseability of similar assets in Avation’s fleet.

Regional aircraft serve shorter routes and smaller markets. They can be especially useful for airlines looking to match capacity carefully, rather than flying larger jets half-empty. If demand is improving in that niche, lessors with the right aircraft can benefit from better placement opportunities.

That said, investors should keep one foot on the ground. The company has not disclosed lease rates, expected revenue, utilisation assumptions, or any profit impact. So while the strategic message is good, the exact financial uplift is not disclosed.

Finnair as a new Avation customer is a positive quality signal

I think this is one of the stronger aspects of the announcement. Signing Finnair gives Avation a credible new airline customer and arguably improves the optics of the leasing portfolio.

Aircraft leasing is partly a numbers game, but it is also about counterparty quality – the ability of the airline on the other side of the lease to keep paying. Avation does not provide detailed credit information here, so no one should overstate it, but moving aircraft from a restructured lessee to Finnair clearly looks like a step up in customer quality.

For shareholders, that can matter beyond immediate rental income. A more diversified and more established customer roster can reduce perceived risk over time.

The 24-month ATR72 engine letter of intent is useful – but it is not the main event

Avation also said it has signed a 24-month lease letter of intent for one ATR72 engine with a new airline client. A letter of intent is a preliminary commercial agreement, not the same thing as a fully completed lease contract.

So this is mildly encouraging rather than transformational. It supports management’s claim that demand is present not only for aircraft, but also for related assets in this segment. Still, until it becomes a firm lease, investors should treat it as a positive indicator rather than bankable income.

What is missing from the Avation RNS and what investors should watch next

This is a useful commercial update, but it is not a full financial deep dive. Several important details are not disclosed.

Lease rental rates are not disclosed.

Expected annual revenue from the two aircraft is not disclosed.

The identity of the previous lessee is not disclosed.

Any transition costs, maintenance costs, or repositioning costs are not disclosed.

Terms of the engine letter of intent beyond the 24-month period are not disclosed.

That means investors cannot yet calculate how much this helps earnings, cash flow, or asset values. The next thing to watch will be whether Avation gives more detail in results or trading updates around lease income, fleet utilisation, and any further ATR placements.

Is this RNS positive for Avation shareholders?

On balance, yes – this looks clearly positive.

The company has taken two aircraft affected by a previous customer’s debt restructuring and lined them up on six-year leases with a new, established airline. That points to resilient demand for the ATR 72-600 and shows Avation is doing the basic job of aircraft leasing properly: keeping assets working.

The only reason to stay measured is the lack of financial detail. Good strategic news does not always translate into a big earnings jump, and without lease pricing, investors cannot judge the full value of the deal.

Still, if you own Avation shares, this is the kind of operational update you would rather see than the alternative. Re-leased aircraft, a new customer in Finnair, and signs of demand in both aircraft and engine leasing make this a solid bit of news, even if it is not yet a numbers-heavy one.

Bottom line on the Avation PLC Finnair aircraft lease announcement

My read is simple: this is a credible, constructive update. It does not change the whole investment case overnight, but it does strengthen the argument that Avation can navigate customer disruption and continue placing its regional aircraft with relevant operators.

In leasing, idle aircraft are a headache and long leases are valuable. Avation has just replaced uncertainty with two six-year contracts. That is a pretty decent result.