Avation assesses four aircraft leases after airBaltic’s Chapter 11 filing

Avation ($AVAP) said four Airbus A220 aircraft in its fleet are leased to airBaltic, which has initiated Chapter 11 proceedings. The leases run through 2030 and 2031. The airline has arranged €350 million in debtor-in-possession financing and intends to continue flying while pursuing its restructuring.

Based on the airline’s stated intentions, Avation expects lease rentals and maintenance-reserve payments to continue and does not anticipate a material immediate impact. Those expectations are not a guarantee of the restructuring outcome or future recoveries. Avation is joining other lessors to represent its interests during the process. The bankruptcy filing concerns an airline customer, not Avation itself; the key exposure is the treatment and performance of the four existing aircraft leases.

Sources:

• Avation — statement on airBaltic restructuring