Aviation PLC (AVAP), a Singapore-based commercial passenger aircraft leasing company, made financial claims on its debtor Virgin Australia (VA). The lessor stated that a preliminary proof of debt claim against the airline amounts to almost $75 million which includes outstanding lease liabilities and compensation for unpaid end-of-lease return maintenance services.
The AVAP counted that the Australia-based airline, which went into voluntary administration in April 2020, owes its lessor $74.4 million on outstanding financial commitments, announced in the Preliminary Proof of Debt Claim against Virgin Australia.
According to Planespotters.com data, before the airline collapsed in April 2020, AVAP had leased a total of 13 aircraft to Virgin Australia. The airline had financial liabilities for two Fokker 100s, five ATR72-600s and six ATR72-500 jets.
In June 2020, AVAP already took its two Fokker 100s and three ATR72-500 jets back. However, the newest Planespotters.com data update showed that five of the ATR72-600 jets still remain at Virgin Australia while being stored at Melbourne Tullamarine Airport (MEL).
Even so, AVAP has already commenced the return process of these last five ATR72-600 aircraft. In the Preliminary Proof of Debt Claim the lessor outlined that relatively low levels of debt were associated with returned aircraft and would be further reduced by expected payment to VA’s creditors.
Virgin Australia reportedly had a total of 79 leased aircraft on its fleet, the majority of which was expected to expire by 2025. However, the struggling airline entered voluntary administration at the height of the COVID-19 crisis on 21 April, 2020, announcing deep reorganization with the focus on domestic flights and was unable to continue fulfilling its financial obligations.