Alliance issued the following ASX release today:
In the Company's half year results presentation, released on 7 February 2024, the Company highlighted its plan to "part out" 11 Embraer E190 aircraft to be acquired in the Aercap transaction.
"Parting out" involves reducing the aircraft to its component parts, engines, undercarriage, and auxiliary power units. Then either using these components for spare parts for fleet use (thereby reducing maintenance capex of the operational fleet) or selling to third parties, as part of Alliance's parts trading (Aviation Services) business.
Due to significant demand for the Company's aircraft, and recent upward movement in used regional jet pricing, Alliance today announces that it will reduce the number of E190 aircraft being "parted out" from eleven to seven.
This will increase the fleet units to be deployed by four aircraft. The additional four operational aircraft will now be used for revenue generating operations for both Company and third-party use (either wet lease or dry lease).
Alliance's Managing Director, Scott McMillan, commented, "We have a long record of opportunistically purchasing aircraft and realising exceptional value by deployment, sale (aircraft or parts) or lease.
"At the time of this notice, Alliance has taken delivery of 10 of 34 of the E190 fleet committed to in February and July 2023, with three already parted out."
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