Full story from the Aus.
Brisbane-based airline Alliance Aviation has announced plans to raise more than $120m to buy up to 20 more aircraft as demand for fly-in, fly-out services continues to grow.
The airline currently operates an all-Fokker fleet of 50 aircraft but managing director Scot McMillan said with no good F100s left in the market, the company was interested in buying Embraer E190s and Bombardier CRJ900s.
With the foreign exchange rate improving, and second-hand aircraft at a surplus, Mr McMillan was confident of getting a good deal.
Alliance shares were placed in a trading halt on the ASX ahead of the announcement, of a $91.9m equity raising by way of an institutional placement, and a $30m share purchase plan for existing shareholders.
“Alliance’s recent performance has been outstanding and allows us to be uniquely positioned to look to expand through a number of growth initiatives,” Mr McMillan said.
“Importantly this capital raising will give us the ability to invest in these initiatives while maintaining our strong balance sheet.”
The small carrier has weathered the COVID-19 crisis better than most due to its fly-in, fly-out contract work for the resources sector, and recently announced it would reward all eligible staff with $1000 worth of shares in the 2020 financial year.
Alliance was also chosen ahead of larger airlines to operate a four-times a week service subsidised by the Queensland government, between Brisbane and the Whitsundays from June 22.
The airline has been the subject of Australian Competition and Consumer Commission attention, due to Qantas’s purchase of a 19.9 per cent stake in February last year.
At the time, Qantas Group CEO Alan Joyce voiced his intention to eventually take over the “well managed” Alliance which raised some red flags for the ACCC.
An enforcement investigation was launched due to the fact Qantas had not sought permission before taking the 19.9 per cent stake, which is ongoing more than 16-months later.
Despite slumping to $1.03 a share at the height of the COVID-19 crisis in mid-March, Alliance shares have been on a steady upward trajectory since then, closing at a near record high of $3.10 in Wednesday’s trade on the ASX. The trading halt was expected to be lifted on Friday.
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