Avation is ending its formal sale process as the Covid-19 pandemic brings unprecedented disruption to the aviation industry that is still ongoing.

The Singapore-based lessor says in a statement that over the past “several weeks”, Covid-19 has “continued to disrupt business activities, particularly air travel, on an unprecedented scale”.

“Market volatility remains high and the short-term, global economic outlook is uncertain,” it adds.

In light of that, the company’s board has concluded that “at present, a formal sale process is unlikely to produce an outcome that accurately reflects the long-term value of the company and at a value that is attractive to shareholders.”

“The board is also mindful of the distraction posed to its day to day operational activities by a protracted formal sale process. Consequently, the board has decided to terminate the strategic review and formal sale process and confirms that it is no longer in active discussions with any interested parties.”

Avation says it will continue to focus on “near-term execution and liquidity, including managing its capital structure as necessary”.

The lessor announced on 7 April that progress on the sale had been delayed due to the coronavirus outbreak.

On 13 May, Avation expressed confidence that it would get through the Covid-19 crisis as “one of the best-performing lessors”, despite its exposure to troubled carrier Virgin Australia.