Avation leases two new jets to Thomas Cook

Commercial aircraft lessor Avation has agreed a deal to supply two aircraft to tour operator Thomas Cook.

Avation has conditionally agreed to buy and lease back two new Airbus A321 aircraft to Cook's airline arm Thomas Cook Airlines.

The two new jets are part of Cook's previously announced fleet renewal programme and are due for delivery by Airbus in February and March 2016.

The lease agreements depend on the sale of the aircraft to Avation and financing. The lease term is initially 12 years with further six-year options.

Avation's executive chairman, Jeff Chatfield, said the deal was a $100m investment and constituted its first purchase of new aircraft.

"We welcome another member of the Thomas Cook Group to our increasingly diversified list of airline customers," he said.

Shares in Avation rose 3p or 2.25% to 136.5p at 08:22 in London. Thomas Cook's stock gained 0.4p or 0.4% to 110.6p.