Avation PLC, a commercial passenger aircraft leasing company, has recently secured a new operating lease for an Airbus A320 aircraft with Philippines low-cost carrier, Cebu Pacific.
The leased narrowbody A320 is to be released to the carrier later this year on a four-year term.
The New Lease Agreement
Avation’s new market-rate lease agreement spans a four-year term with the Phillipines major low-cost airline.
This lease agreement adheres to Avation’s typical lease terms, ensuring a harmonious and mutually beneficial partnership between the lessor and lessee.
The Airbus A320 aircraft, subject to this lease, is currently undergoing maintenance checks and is set to be delivered to Cebu Pacific in December 2023.
Cebu Pacific is the largest low-cost carrier in the Philippines. It was founded in 1996 and has since grown to become one of the most popular airlines in Southeast Asia.
With a substantial route network encompassing over 60 domestic and 28 international destinations, including Australia, Brunei, China, Hong Kong, Indonesia, Japan, Malaysia, Singapore, South Korea, Taiwan, Thailand, UAE, and Vietnam, Cebu Pacific is a formidable presence in the Asian aviation landscape.
One of Cebu Pacific’s standout features is its modern and diverse fleet, which includes the Airbus A330 family, Airbus A320 family, and ATR 72-600 aircraft.
Notably, the airline boasts the highest seat capacity of any carrier in the Philippines, supported by having one of the youngest fleets in the country.
Despite the challenges posed by the COVID-19 pandemic, Cebu Pacific has shown remarkable resilience. The airline recently reported its second consecutive profitable quarter since the onset of the pandemic, marking a significant milestone on its path to recovery.
Moreover, Cebu Pacific has successfully rebounded to achieve 50% of its pre-pandemic operating income from 2019.
Avation’s Executive Chairman, Jeff Chatfield, expressed his satisfaction with the new lease agreement, emphasizing the company’s satisfaction in placing the aircraft with an existing customer like Cebu Pacific.
Chatfield noted that this transaction underscores Avation’s capacity to transition aircraft to quality lessees and highlights the strength of their relationships with existing customers.
With the scheduled delivery of the aircraft in December 2023, this lease agreement is expected to have a positive impact on Avation’s fleet metrics.