Alliance says coronavirus crisis helped it to increase profits

written by Adam Thorn | May 20, 2020
Alliance Aviation Services Fokker 70 VH-NUU has a special Pink Lady livery. (Dave Parer)
In 2019, Alliance Aviation’s Fokker 70 VH-NUU had a special Pink Lady livery. (Dave Parer)

Fly in, fly out charter operator Alliance said its ability to adapt planes for coronavirus has helped it to increase profits this financial year by $7 million.

The business said its “pioneering” measures, including social distancing seating plans, new cleaning regimes and passenger temperature checks, have been adopted by much of Australia’s industry.

“The swift and flexible response has seen Alliance capitalise on additional demand for flights in the resource sector and, particularly, increases in flight schedules of contracted clients,” Alliance said in a statement to the ASX.

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This financial year, Alliance expects to make $40 million in profit before tax, up from $32.8 million in 2019.

Its board called the result “exceptional” and said it would award most of its employees, other than senior management, $1,000 in free shares, which are now trading at a four-month high.

The business said that while inbound tourism flights were suspended, it had seen demand actually increase in the resource sector for both regularly scheduled and charter flights.

“The company has experienced a substantial increase in demand for these services subsequent to the outbreak of COVID-19 and expects to deliver its strongest charter revenue results in many years,” it said in a statement. “The additional demand is being driven by a combination of social distancing and a lack of availability of scheduled flights by other operators.”

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Alliance Aviation, the parent company of Alliance Airlines, describes itself as Australia’s leading air charter service operator, providing specialised services for the resources industry, as well as inbound and domestic group travel.

It currently has a fleet of 40 Fokker aircraft, employs 500 staff and provides regular and ad hoc charter services in Australia and New Zealand.

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7 Comments

  • Salesh Prasad

    says:

    Well done Alliance

  • JOHN

    says:

    The right aircraft for the tasks and routes, minimal ground support equipment required.

  • CJ

    says:

    So Virgin (VARA division) has 14 x F100s. So if Virgin mark 2 is stuffed & Rex get 10 x B738s or A320s, then could Alliance use some of their spare capacity & some of these 14 Vara f100s to do regional services, like it has been doing for Virgin ?

    Rex does high frequency flights BNE-SYD-MEL during Mon-Fri peak hours & Sun night. During middle of day Mon-Fri, all day Saturday & Sunday am, Rex does some regional flights like BNE, SYD & MEL to CNS & Alliance does some flights with f70(80 seat) or f100(100 seat) that can’t justify a B738/A320.

    Some flights to PER could operate from BNE, SYD, MEL departing after say 9pm & turning around at PER to be back in BNE, SYD, MEL for peak hour rush. Obviously SYD curfew comes into play.

  • Mac Carter

    says:

    Should the administrator or new owners of Virgin decide to split the assets of the Virgin Australia Group, VARA might be a good fit for Alliance, continuing the work they already perform for Virgin Australia Group.
    Alliance, already the specialist operator of Fokkers globally would easily accommodate the additional Fokker fleet and keep them operational for many years to come.

  • Ric Lasslett

    says:

    Alliance also features aviations worst colour scheme !

  • Jennifer

    says:

    Buy Alliance shares!!!

  • Peter

    says:

    Ric; you are a goose. This is the womans breast cancer awareness colour scheme aircraft.

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