Australia’s Alliance Aviation Services’ move towards Embraer E-Jets has reached the point where the Brazilian aircraft now constitutes half of its inventory.
The Brisbane-based company’s report for the half-year ended December 31 2024 noted that its fleet, which operates as Alliance Airlines, now has 38 E190s on strength, the same number as its previous mainstay, the Fokker 70 and 100. Alliance has 13 80-seat Fokker 70s and 25 100-seat Fokker 100s in the fleet. The Embraers come in three different configurations, with 94, 97 or 100 seats.
In the first half of 2025, the fleet expanded with the addition of three E190s, along with one additional Fokker 100.
The number of E190s in the fleet is expected to accelerate, rising from 35 in FY2024 to an estimated 43 in FY2025 and an anticipated 52 in FY2026.
The Group’s principal activities are provision of contract, charter, and allied aviation services to the country’s large mining and resource industry, as well as to domestic and foreign airlines. One of its specializations is ‘Fly In, Fly Out’ (‘FIFO’) services, airlifting workers to and from remote mining sites in the country’s interior.
The focus on providing flight services to mining companies does make the Group sensitive to shifts in mineral prices. Downward pricing pressures on the global nickel market led to client BHP Nickel West announcing last September that they would move their operations from full production to care and maintenance by December 2024. That led to a reduction in Alliance-provided flights from 24 per week to seven per week, which affected the Group’s revenue stream from contract work.
Charter revenue also saw a decrease of 11.1% when compared to the prior comparative period; charter revenue was also affected by aircraft availability, with priority being given to wet-lease and contract revenue operations.
Wet lease revenue reported an increase of 25.5% compared to the prior comparative period.
Wet lease activity benefited from three additional aircraft being deployed to operate wet-lease flying in 1Q25; however, this growth was curtailed in the last quarter of 1H25 with two aircraft sidelined with structural damage.
Recognizing the need for more hangar space in Brisbane, the Group took an opportunity to purchase additional hangars located adjacent to its current facilities. This strategic acquisition will support the needs of the growing fleet and accommodate future increases in demand.
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