Australia’s Alliance Airlines ramps up E190 purchases

Alliance Airlines (QQ, Brisbane Int’l) has entered into an agreement with Jetran for the purchase of 16 additional E190s and one spare General Electric CF34 engine. The Australian carrier said in a stock market filing the total acquisition price for the package is AUD85 million Australian dollars (USD64.8 million) and will be funded through a mixture of existing cash facilities, operating cash flows, and debt. “Alliance has again taken advantage of its strong financial position and current market conditions to acquire these quality aircraft at compelling value,” Managing Director Scott McMillan said. “The 100 seat jet aircraft market globally will rebound quickly as carriers look to focus on total trip costs rather than traditional metrics.” The aircraft are ex-American Airlines (AA, Dallas/Fort Worth) stock and are in a 99-seat, two-class cabin configuration. Deliveries to Alliance will start this month with five aircraft due after which one a month will arrive until November 2021. “The acquisition of these 16 aircraft is in addition to the previously disclosed acquisition of fourteen [ex-Canadian Airlines] E190s from Azorra Aviation. This transaction completes Alliance’s short-term fleet expansion strategy and while the Azzora transaction included options for five additional aircraft, these options will now not be exercised,” McMillan added. Alliance expects the E190 to be added to its CASA Air Operator’s Certificate in March 2021. It is using the incoming Embraer regional jets to replace its existing Fokker Aircraft fleet which numbers twenty-seven Fokker 100s, five Fokker 50s, and thirteen Fokker 70s. The carrier specialises in ad-hoc charters as well as FIFO (Fly-In/Fly-Out) services to mining outposts. As previously reported, it will also partner Virgin Australia (VA, Brisbane Int’l) on scheduled domestic Australian flights. The duo was recently given antitrust consent to proceed with their partnership which will see them cooperating on a total of 42 routes throughout Australia. Alliance will use the added Embraer capacity to capture what it termed “several growth opportunities across Australia” including contract flying and wet and dry lease operations.