Avation is an aircraft lease company. The model is easy to understand, and has been very effective in recent years: Purchase new aircraft, which offer a lease yield of 13%, with asset depreciation of about 5% per year. Apply 75% debt financing, at an interest rate of around 5%. Total other cash costs net off to around 1%.
01 Feb 2017
Jet-propelled Growth
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Jet-propelled Growth
Avation PLC (AVAP:LON) | 108 0.5 0.5% | Mkt Cap: 76.5m
- Published:
01 Feb 2017 -
Author:
Ed Stacey -
Pages:
3
Avation is an aircraft lease company. The model is easy to understand, and has been very effective in recent years: Purchase new aircraft, which offer a lease yield of 13%, with asset depreciation of about 5% per year. Apply 75% debt financing, at an interest rate of around 5%. Total other cash costs net off to around 1%.