Fleet acquisition of an additional 30 E190 Aircraft

Alliance is pleased to advise that it has entered into a sale and purchase agreement for an additional 30 Embraer E190 jet aircraft from Dublin-based AerCap Ireland Limited (“AerCap”).

The additional 30 E190 aircraft are currently on lease from AerCap to a US airline and have been operated by that airline since new. Aircraft deliveries and payments will commence in September 2023 and will be completed in January 2026.

Final purchase price for each aircraft will be adjusted for the maintenance status of the airframe and the two fitted engines in the week preceding each delivery. Accordingly, there is a significant degree of variation in unit cost and a totally firm fleet price is unable to be given at this time.

The aircraft will be purchased one at a time over a two-year period by a mix of debt and cash generated through the operation of the company’s existing Fokker and Embraer 70 aircraft fleet.

The aircraft will be delivered in the United States and then flown to Alliance’s new base maintenance facility in Rockhampton for refurbishment and Australian certification. A number of the aircraft may also be disassembled, and the engines and other componentry retained to support the balance of the company’s Embraer fleet thus ensuring Alliance has access to a sizeable parts pool for the E190 fleet.

Should all aircraft be added to the company’s operating fleet, the total fleet size would eventually reach one hundred with 37 Fokker 100/70 and 63 Embraer E190 aircraft.

The additional fleet will be utilised across all the company’s operations.

Alliance’s Managing Director, Scott McMillan commented, “This acquisition will provide Alliance with increased capacity, access to major componentry including engines and enhanced operational capability.”

With the aircraft being delivered over a period of more than two years from September 2023, Alliance will be able to increase services progressively as and when each aircraft is certified after major maintenance checks in Rockhampton.