Interim Management Statement

12 May 2011
                                                AVATION PLC

                                       Interim Management Statement

Avation  Plc, the commercial aircraft leasing company, is pleased to report an Interim Management Statement
for the 18 weeks to 6th May 2011.

In general, the current Group trading is substantially in line with expectations and is consistent with the
financial  performance  of the Company in the first half-year period ended 31st December  2010,  which  was
reported on 3rd February 2011. However, the asset base, financial position and outlook for the Company  has
materially improved, since the Company successfully raised GBP10m, pursuant to a Placing that was announced
on 9th March 2011.  This significantly strengthens the Company's balance sheet.

VIRGIN AUSTRALIA
The Company previously announced that it had entered into various arrangements to procure between eight and
eighteen  ATR-72 aircraft for use in a new regional Virgin Australia airline network. It is  expected  that
the  first Virgin Australia aircraft will be delivered new from the factory on 30th June 2011. The  Company
anticipates that the operating income from the lease of these operations should therefore commence on  30th
June 2011.

AIRBUS A320
Avation  Plc has entered into a Letter of Intent to acquire an Airbus A320-231, which is the "sister  ship"
of  its existing A320-231 that is currently operated by Skywest Airlines in Australia. In turn, the Company
has  granted a lease option to Skywest Airlines wherein the proposed new operating lease would be for  four
years on substantially the same terms as the existing A320.  If Skywest Airlines exercises the option,  the
aircraft would be available to enter service in Australia around August 2011.

CORPORATE TAXATION DOMICILE
Avation  Plc  is proceeding to match the domicile of its taxable base with its operations in the  Singapore
jurisdiction. The current headline taxation rate for corporations resident in Singapore is 17%.

The Directors take responsibility for the contents of this announcement.

                                                ---ENDS---
ENQUIRES:

Avation PLC
Jeff Chatfield, Executive Chairman                                     [phone]

Financial Public Relations
Bishopsgate Communications                                             [phone]
Laura Stevens/Giang Nguyen

Websites
www.avation.net

Avation plc