ATR, the world number one regional aircraft manufacturer, delivered the first-ever green financed aircraft to Braathens Regional Airlines (BRA).
It is part of a new order for five 72-600s, all purchased by Avation from ATR and leased to BRA. Upon completion of the order, the airline will operate an entirely ATR fleet comprising 15 ATR 72-600 aircraft.
Vigeo Eiris is one of the world’s leading independent agencies providing Environmental, Social and Governance (ESG) ratings. Therefore, the project of replacing ageing regional jets with new ATR 72-600 aircraft is aligned with the Green Loan Principles (GLP). This was established by the Loan Market Association in 2018.
This first-ever green financing of an aircraft confirms the high sustainable value of the modern ATR turboprop aircraft.
The ATR 72-600 aircraft has significant environmental advantages over regional jets and other turboprops emitting 40 per cent less CO2. This makes turboprops more efficient than jets on short sectors as they accelerate air using less power, using less fuel.
BRA’s CEO, Geir Stormorken, remarked: “We have made a commitment to decrease our environmental impact. The ATR is an essential part of our strategy. With that as a goal, it simply makes sense to choose the most efficient aircraft.
“By replacing parts of our existing fleet of regional jets with ATR 72-600 aircraft we will emit 7,500 fewer tonnes of CO2 per aircraft, per year. Aviation is an essential part of Sweden’s regional transport network. We look forward to showing our passengers and the Swedish public there is a sustainable way of flying.”
Executive chairman of Avation, Jeff Chatfield, commented: “It is essential for us to progress our fleet into new technology. Low carbon emission aircraft such as the ATR 72-600 maintain their value over a long period. ATR is one of the best assets in terms of residual value retention in the business.
“BRA’s decision to consolidate their own operation around the ATR 72-600 aircraft type demonstrates their understanding of the regional aviation market and the importance of reducing carbon emissions. BRA is an airline leading the way in terms of striving to offer their passengers the best possible experience, whilst optimising operations and minimising environmental impact.”
Financing a deal
“Deutsche Bank is proud to have played a key role in the first green financing of a commercial aircraft. We’re hopeful that this leads the way for more sustainable financing activity in aviation. [That and an] increased adoption of lower carbon emission aircraft across the industry,” says Deutsche Bank’s head of global transportation finance for Asia, Richard Finlayson.
Chief executive officer of ATR aircraft, Stefano Bortoli, said: “It’s only natural that the first Green Financing deal for a commercial aircraft would involve an ATR and BRA.”
The innovation of the ATR design benefits from its lighter fuselage and the efficiency of its turboprop. This means less fuel burn and less CO2.
“It makes sense that BRA, the leading voice on responsible regional flying in Sweden, would upgrade its own fleet to an all ATR 72-600 one; benefitting from these advantages compared to its rivals,” added Bortoli.
“We are proud to launch Green Financing in commercial aviation and lead the way for innovation and sustainable regional aviation. We are thankful to Avation for the foresight and flexibility to establish the operating lease for this series of aircraft deliveries.”
For more information on ATR aircraft, visit the website.