Singapore-headquartered commercial passenger aircraft leasing company Avation has entered an aircraft lease agreement with Swedish airline Braathens Regional Airways.

Under the agreement, Avation will lease a new ATR 72-600 turboprop aircraft to Braathens for ten years.

The aircraft is the fifth to be leased by Avation and will be handed over at the manufacturer’s facility in Toulouse, France, in March 2020.

Braathens initially ordered four ATR 72-600 aircraft, with the first being delivered this month.

The remaining aircraft are scheduled to be delivered between the fourth quarter of 2019 and the end of the first quarter of 2020.

Avation executive chairman Jeff Chatfield said: “We are pleased to establish a fifth aircraft lease with Braathens, an existing client. In our view, the aircraft may be eligible for green finance given the efficient nature of the ATR 72-600.

“We also note the positive outlook on Avation’s credit rating from the Japan Credit Rating Agency. The cost of funds is a key driver of aircraft lessor profitability and the company constantly seeks to improve its credit rating in order to lower its funding cost.”

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Manufactured by France-based ATR, the 72-600 aircraft is designed to emit 40% less CO2 compared to other regional jets and turboprops, saving up to 4,000t of CO2 per aircraft annually.

Turboprops are convenient for short flights of up to one-hour as less engine power and fuel is needed.

Last month, ATR delivered the first of three ATR 72-600 aircraft to Tunisair Express.

The first ATR 72-600 aircraft will be delivered in mid-December.