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Having only joined the junior market at the end of last year, aircraft leasing company Capital Lease Aviation (CLA:AIM) is expanding fast, recently completing its fourth aircraft acquisition. The company has purchased an A320 jet aircraft for $12.2 million from a US based Trust company, which is under lease to a major US domestic airline.

The aircraft will be leased until 2013 to a large domestic US carrier at current market rates, with an option to renew at the then prevailing market rates.

Capital Lease Aviation has bought the aircraft with existing cash reserves and intends to leverage the ownership of the asset when required to match the term of the lease. Chairman Jeff Chatfield says the acquisition is in line with the group’s strategy to diversify its asset and customer base, which will help to reduce risk. ‘The A320 type is highly sought-after by airlines around the world and is in demand at the moment,’ he adds.

Chatfield has big plans for the company, which currently has a market value of £78.3 million, and believes that now is a good time for investors to jump on board.

He hopes to lease aircraft to a range of airlines globally, with a specific focus on Ireland, Australia, the US and Asia, where demand is high.

Although it is still only a young company, having been incorporated by Avation in June 2007, it is already profitable and has a good cashflow.

Recent troubles in the airline sector are also of no concern to the company because, as Chatfield explains, demand for new aircraft will continue to be driven by the need to replace old ones and continuing passenger growth. Plus, if airlines are facing financial pressure, they are more likely to lease an aircraft than buy one.

The share price currently sits at 80p, up from the admission price of 75p.

Shares says: With bags of potential, the shares are likely to really take off.