Alliance secures $100m in new finance, profits higher than expected
Alliance Aviation says it is on track to report better than expected profits after the number of fliers rose in the six months to June 30, with $100 million in new funding from financiers in the United States as it expands.
Shares in Alliance soared 14 per cent to $3.22 – their highest level since the Australian Competition and Consumer Commission blocked Qantas from acquiring the remaining 80 per cent of the company in April – in response.
Qantas was blocked in its bid to own 100 per cent of regional fly in, fly out services airline Alliance Aviation. Oscar Coleman
The charter aviation and maintenance services company said its unaudited underlying net profit before tax for the 12 months to June 30 was now expected to be $56.9 million, up from previous guidance of between $50 million and $55 million.
Alliance also said it had secured a $100 million private placement shelf facility from PGIM’s private debt and direct lending business, Pricoa, as it adds to its fleet of Embraer E190 aircraft. “The facility is available to be drawn down to fund future aircraft settlements and working capital requirements,” the company told shareholders.
Alliance said it would buy a further four planes – without engines, known as airframes – from Azorra Aircraft to help meet a capacity shortfall while it waits to receive 30 E190s it has ordered from AerCap. “These airframes have a long maintenance life remaining and are “sister ships” to the aircraft being acquired under the AerCap Deal,” Alliance said.
“These airframes will be delivered to Alliance in Costa Rica… starting in August. Alliance will utilise spare engines from the disassembled aircraft mentioned above to bring the four additional aircraft into operation between November and
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