Alliance Airlines returns to profit in 2015/16

written by australianaviation.com.au | August 11, 2016
FOKKER 50 ALLIANCE HBA JUL13 RF IMG_9934 crop
A file image of an Alliance Fokker 50. (Rob Finlayson)

Alliance Aviation Services says the focus on the year ahead will be growing its non-mining flying after reporting a return to profitability in 2015/16.

The charter and fly-in/fly-out operator said net profit for the 12 months to June 30 2016 came in at $13.5 million, compared with a statutory net loss of $36.6 million in 2014/15 when the company wrote down the carrying value of its fleet in response to changing market conditions.

Profit before tax came in at $13.5 million, compared with a $39.3 million loss in the prior year, Alliance said in a regulatory filing to the Australian Securities Exchange on Thursday.

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Revenue declined 9.3 per cent to $182 million. This was due to a reduction in the price of fuel during the year, given fuel savings and increases were passed through to customers in most of Alliance’s long term contracts.

Alliance said the company was in the midst of a transition into a “broad based aviation business” with a diversified revenue stream that covered charter opportunities in tourism, aircraft sales, wet and dry leasing and spare parts sales.

“This result has been driven by continued cost control and the diversification of revenue streams,” Alliance said.

“The financial outlook for Alliance for the year ended 30 June 2017 is one of opportunity. Whilst contract revenues remain stable, Alliance has continued to restructure its business, diversify its revenue and operate in new ways to grow the business.”

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The company said the acquisition of 21 Fokker 100 and Fokker 70 aircraft from Austrian Airlines that was announced in November 2015 had “positioned Alliance to derive significant revenue opportunities from aircraft and spare part sales together with wet and dry leasing opportunities in a number of countries”.

In July, Alliance said it had delivered the first of three aircraft due to be handed over to QantasLink during the first half of 2016/17. The Fokker 100 VH-NHA previously operated with an Austrian subsidiary.

Alliance said discussions with Virgin Australia about a proposed strategic partnership, which was first announced in February, were continuing.

“Once this agreement is finalised it will provide further opportunities to Alliance,” the company said.

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4 Comments

  • deano

    says:

    It would be great to see Alliance buddy up with REX and offer more RPT flights
    In particular, linking REX’s hubs at Sydney, Melbourne, Adelaide, Perth, Brisbane, Townsville and Cairns
    With the amount of passengers REX brings in from regional areas, there would be plenty of opportunities for onward traffic to other capital cities

    It is just crazy that REX don’t offer that onward service now
    How many passengers are they losing because it is just easier to book for example Albury to Brisbane via Virgin, Qantas or even direct with Jetgo
    Surely there would be mutual benefits for both as REX would get more bums on seats and Alliance would likely fill their Fokkers with REX passengers and passengers they could generate themselves
    A Melbourne, Sydney, Brisbane Cairns shuttle would be an easy start with just 2-3 F70’s or F100’s

  • GBRGB

    says:

    Agreed, I see alliance aircraft spend a lot of time sitting on the ground in Townsville, especially on days like Sat when QF and VA have very limited capacity, weekend services Townsville to Gold Coast or Adelaide, even Melbourne or Canberra, lots of options out there, I don’t know how they can afford to have planes sitting on the tarmac for days at a time.

  • Mac Carter

    says:

    We desperately need a jet service between Cairns and Townsville.
    Townsville / Mackay / Rockhampton / Brisbane also.
    How about it Alliance.
    They use to have a Townsville / Brisbane flight daily.

  • john

    says:

    Alliance has plenty of aircraft sitting around basically Friday to Sunday, not rest of week.

    When you have 4 airlines flying on main domestic routes(even though from only 2 camps QF & JQ & VA & TT) it makes it hard to compete, as JQ & TT fares are almost always going to be what Alliance can offer.

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