Lessor Avation raises funds for Skywest ATR payments

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Aircraft lessor Avation has raised £10 million ($16.2 million) prior to expenses to fund pre-delivery payments of eight ATR turboprops.

The company issued 10 million new ordinary shares at a price of 100 pence per share.

Proceeds are supporting eight ATRs - four -500s and four -600s- scheduled for operation by Australia's Skywest Airlines under a wet lease deal with Virgin Blue unveiled earlier this year.

Avation states the ATR purchase is the first step in accommodating an agreement it has with Skywest for the operation of up to 18 ATRs for along the Eastern Coast of Australia.

Avation's share placement is conditional pending resolutions passed by shareholders at its 18 March annual meeting.