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Alliance receives first E190 in $111m deal

written by Adam Thorn | October 29, 2020

Alliance is to receive the first of its 14 new Embraer E190s on Thursday afternoon.

The E190 left Bonriki in Kiribati at 2:19pm as flight SXIE190 and will land at Brisbane at 5:38pm.

The business announced in August it had agreed to a $111 million deal with US-based Azorra Aviation to buy the aircraft to fly regional routes, which also includes six spare General Electric CF34 engines, as well as the option to acquire a further five Embraer jets.

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

“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 Alliance’s managing director Scott McMillan.

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

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“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.

“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.

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2 Comments

  • James

    says:

    Fantastic to see. Great aircraft.

  • Mac Carter

    says:

    Hope to see these aircraft servicing regional Australia for many years to come.

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