LONDON (ShareCast) - (Sharecast News) - Aircraft leasing company Avation is to sell a Boeing 777-300ER widebody aircraft for a "material profit above book value".
The company said that the sale of the plane, currently on lease to Philippine Airlines, is expected to release $33m in net cash proceeds once the associated debt finance has been paid off.

Avation will use the cash to lower debt and may reinvest proceeds into narrowbody aircraft in the secondary market to "optimise" its fleet's risk profile.

Avation's chair Jeff Chatfield said he was "delighted" by the agreement.

"We believe that the market values for modern commercial aircraft are materially higher than our book values and we are experiencing favourable market conditions. This Boeing 777-300ER has been a valuable investment, however, by policy we try to focus on aircraft types currently in production and we formed a view that it was time to divest this asset."

Shares were up 3.1% at 150p by 1513 BST.

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