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What crisis? Alliance buys 14 E190s in $111m deal

written by Adam Thorn | August 4, 2020

Fly in, fly out charter operator Alliance has announced it’s agreed on a $111 million deal to purchase 14 114-seater Embraer E190s.

The business said the aircraft will predominantly fly regional routes and hinted its moderate size made it perfect for a post-COVID-19 market.

“Alliance, since inception in 2002, has a track record of purchasing aircraft at opportunistic times and at significantly reduced value to their market value,” said managing director Scott McMillan.

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In May, the airline surprisingly announced it had increased profits this financial year by $7 million, which it credited to its ability to adapt planes for coronavirus.

The deal with US-based Azorra Aviation will see the first of the 14 E190s arrive from September and also includes six spare General Electric CF34 engines, as well as the option to acquire a further five of the Embraer jets.

It will join its existing fleet of 24 Fokker F100, 13 Fokker 70LRs and five Fokker 50 turboprops.

“With many airlines not flying and the increased demand for a 100-seat narrow body configured aircraft in the Australian market, this acquisition is more than opportunistic, it underpins our expected growth,” said McMillan.

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“Given the reduced passengers on mainline routes due to COVID-19, the E190 has the potential to be the perfect aircraft type for some mainline routes.

“Our purchase of 21 aircraft from Austrian Airlines in 2015 resulted in significant growth opportunities as well as providing a long-term supply of spare parts at minimal cost for our ongoing operations. Alliance is confident that this purchase of 14 Embraer E190 aircraft will result in similar opportunities presenting themselves.”

The confident move follows Alliance’s huge success in riding through the coronavirus crisis, where it capitalised on the reduced schedule of larger carriers and the need for COVID-adapted planes.

Alliance has 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.

Previously, it predicted it would post $40 million in profit before tax for the last financial year, up significantly.

Its board called the result “exceptional” and said it would award most of its 500 employees, other than senior management, $1,000 in free shares.

“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 in May.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

10 Comments

  • Lee

    says:

    Cheaper than A22o-100s I guess!

  • Great aircraft, are you retiring any of your older planes.

  • Good purchase indeed, which will mean they can retire some of their high time `1989 built F100s.

  • Keith Annetts

    says:

    Exciting Times

  • AlanH

    says:

    Rex, take note! This is how you do business in the regional space!

  • Ian

    says:

    looks like Alliance will be doing many more of ex VA regional routes & even perhaps into CBR. Qantas BNE/CBR is most often a B717.

  • cj

    says:

    looks like Alliance will be doing many more of ex VA regional routes & even perhaps into CBR & not retiring many Fokker jets just yet.

  • MH

    says:

    Just when you thought the resource sector is going downturn. Are they betting on a recovery of the resource sector soon?

  • Ronald Spencer

    says:

    where are these planes coming from New ,Second Hand ?

  • Lhano Martins Xavier Junior

    says:

    These planes are Copa Airlines, and good bye old Fokker 100 who have much cycles!!!

Leave a Comment

Your email address will not be published. Required fields are marked *

What crisis? Alliance buys 14 E190s in $111m deal

written by Adam Thorn | August 4, 2020

Fly in, fly out charter operator Alliance has announced it’s agreed on a $111 million deal to purchase 14 114-seater Embraer E190s.

The business said the aircraft will predominantly fly regional routes and hinted its moderate size made it perfect for a post-COVID-19 market.

“Alliance, since inception in 2002, has a track record of purchasing aircraft at opportunistic times and at significantly reduced value to their market value,” said managing director Scott McMillan.

Advertisement
Advertisement

In May, the airline surprisingly announced it had increased profits this financial year by $7 million, which it credited to its ability to adapt planes for coronavirus.

The deal with US-based Azorra Aviation will see the first of the 14 E190s arrive from September and also includes six spare General Electric CF34 engines, as well as the option to acquire a further five of the Embraer jets.

It will join its existing fleet of 24 Fokker F100, 13 Fokker 70LRs and five Fokker 50 turboprops.

“With many airlines not flying and the increased demand for a 100-seat narrow body configured aircraft in the Australian market, this acquisition is more than opportunistic, it underpins our expected growth,” said McMillan.

PROMOTED CONTENT

“Given the reduced passengers on mainline routes due to COVID-19, the E190 has the potential to be the perfect aircraft type for some mainline routes.

“Our purchase of 21 aircraft from Austrian Airlines in 2015 resulted in significant growth opportunities as well as providing a long-term supply of spare parts at minimal cost for our ongoing operations. Alliance is confident that this purchase of 14 Embraer E190 aircraft will result in similar opportunities presenting themselves.”

The confident move follows Alliance’s huge success in riding through the coronavirus crisis, where it capitalised on the reduced schedule of larger carriers and the need for COVID-adapted planes.

Alliance has 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.

Previously, it predicted it would post $40 million in profit before tax for the last financial year, up significantly.

Its board called the result “exceptional” and said it would award most of its 500 employees, other than senior management, $1,000 in free shares.

“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 in May.

Steer your own in-flight experience – available on print and digital Whether our classic glossy magazine in your letterbox, daily news updates in your inbox, peeling back a few layers in the podcast or our monthly current affair reports, you can count on us to keep you up to date. Sign up today for just $99.95 for more exclusive offers here. Subscribe now at australianaviation.com.au.

10 Comments

  • Lee

    says:

    Cheaper than A22o-100s I guess!

  • Great aircraft, are you retiring any of your older planes.

  • Good purchase indeed, which will mean they can retire some of their high time `1989 built F100s.

  • Keith Annetts

    says:

    Exciting Times

  • AlanH

    says:

    Rex, take note! This is how you do business in the regional space!

  • Ian

    says:

    looks like Alliance will be doing many more of ex VA regional routes & even perhaps into CBR. Qantas BNE/CBR is most often a B717.

  • cj

    says:

    looks like Alliance will be doing many more of ex VA regional routes & even perhaps into CBR & not retiring many Fokker jets just yet.

  • MH

    says:

    Just when you thought the resource sector is going downturn. Are they betting on a recovery of the resource sector soon?

  • Ronald Spencer

    says:

    where are these planes coming from New ,Second Hand ?

  • Lhano Martins Xavier Junior

    says:

    These planes are Copa Airlines, and good bye old Fokker 100 who have much cycles!!!

Leave a Comment

Your email address will not be published. Required fields are marked *

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