The deal with Jetran LLC will deliver 16 Embraer E190 aircraft and a spare GE engine. It follows the earlier purchase of 14 aircraft from Azzora Aviation. An option in the Azzora deal was for an additional five aircraft which Alliance said would not be exercised.
Alliance managing director Scott McMillan said the company was taking advantage of the market conditions to buy the aircraft.
Because of travel restrictions, companies around the globe have been either collapsing or selling off assets to survive.
In the Alliance case, the 100 seat aircraft were previously operated by American Airlines. Five of the aircraft will be handed over this month and the remainder will be delivered up to November, 2021.
“This additional capacity will be deployed to capture several growth opportunities across Australia including contract flying and wet and dry lease operations. A wet lease is when Alliance would provide the aircraft and crew to another airline. A dry lease is one without crew,” McMillan said.
“This transaction completes Alliance’s short term fleet expansion strategy.”
Alliance expects to have regulator approval for the E190 by March and forecast there would not be any material impact on earnings until 2023.
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