Chorus Aviation to acquire six ATR 72-600 aircraft on lease to Flybe and Virgin Australia

Chorus Aviation has reported agreements by Chorus Aviation Capital’s subsidiaries to acquire six ATR 72-600 aircraft with attached leases from Avation PLC. Three of these aircraft are currently on lease to U.K. carrier, Flybe, and three to Virgin Australia Airlines. The aircraft are between one and four years old and are the first ATRs added to Chorus Aviation Capital’s growing regional aircraft fleet. Commenting on the planned purchase, Chorus Aviation Capital’s President, Steven Ridolfi, said, “We are delighted to announce this portfolio acquisition, adding two outstanding customers to our growing pool of airline lessees, and welcoming the addition of the first ATRs to our diversifying fleet.” The aggregate purchase price for the aircraft is consistent with current market values for similar aircraft, and Chorus Aviation Capital intends to finance the purchase utilizing a combination of debt financing and cash with a leverage ratio of between three and four to one. The transactions are expected to close by the end of June 2017 and are subject to customary conditions precedent to closing, including novation of the existing leases and receipt of debt financing.