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Originally Posted by Peter Truman
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From Above
E190 Airframe Acquisition and Fleet Update
Alliance took delivery of its first Embraer E190 in September 2020 and now has 33 E190s in Australia, all of which are owned. This significant fleet expansion has taken considerable investment to build the internal infrastructure and operating capability.
The business is now in a strong position to grow the E190 operational fleet and its profitability.
As announced in February 2023, Alliance entered into a contract to acquire 30 additional E190 jet aircraft from AerCap Ireland Limited (“AerCap Deal”). These aircraft are scheduled to commence delivery from September 2023 with final delivery in January 2026.
The rationale for this acquisition was twofold: to provide capacity for growth and to provide aircraft for disassembly to provide spare componentry and spare engines. This will support both the company’s operational fleet and provide inventory for the company’s Aviation Services business which continues to see increasing demand.
As is the case with the company’s Fokker spare parts holdings, Alliance will provide E190 spares to other operators in Australasia and around the world.
Separately, Alliance identified a capacity shortfall in the first quarter of 2024 due to an increase in demand, contractual commitments, the timing of the AerCap Deal deliveries and related fleet logistics.
To address this, Alliance has entered into a contract to acquire an additional four E190 airframes from Azorra Aircraft Holdings LLC (“Azorra Deal”). These airframes have a long maintenance life remaining and are “sister ships” to the aircraft being acquired under the AerCap Deal. These airframes will be delivered to Alliance in Costa Rica (without engines fitted) starting in August 2023.
Alliance will utilise spare engines from the disassembled aircraft mentioned above to bring the four additional aircraft into operation between November 2023 and March 2024.
Mr McMillan commented, “This deal is complementary to the AerCap Deal and ensures we have the capacity at the time we require it to deliver on the demand we are seeing in the market”.