Australian charter operator Alliance Aviation continues to enjoy a strong charter market, particularly with fly-in, fly-out (FIFO) operations for the country’s resources sector.
Speaking at the company’s annual meeting, managing director Scott McMillan observes that the company retained “all material contracts” in the year to 30 June, and that it has subsequently signed up new FIFO operations.
In addition, Alliance has started international wet-lease services to Honiara in the Solomon Islands and Wellington, New Zealand. In January, however, it dropped tourism charters owing to low utilisation.
“Our contract book is the strongest it has been since we listed in 2011 and our growing fleet will ensure we have the capacity to take on additional contract business,” says McMillan.
“Our wet-lease operations continue to expand in volume and scale and individual aircraft utilisation will rise progressively over the next eighteen months. This ‘industrial leverage’ results in lower unit costs and either stable or growing margin.”
McMillan also touched on the carrier’s environmental efforts. The Fokker fleet, which is powered by Rolls-Royce Tay powerplants, records just 3% of its take-offs at full power in an effort to reduce fuel consumption and extend engine life.
Similarly, the thrust on the GE Aerospace CF34 engines that power Alliance’s Embraer 190s has been set at its lowest level.
He adds that Alliance is likely to part out up to 11 E190s to provide spares and engines for the operational fleet. Spares may also be sold to third parties.
As of 30 June, Alliance’s fleet stood at 33 E190s, 24 Fokker 100s, and 13 Fokker 70s.
Separately, on 24 November Alliance announced a five-year extension of its FIFO contract with BHP Olympic Dam, extending an arrangement started in 2007. The South Australian service sees Alliance operate E190s from Adelaide to Olympic Dam in South Australia.
On 27 November, Alliance announced a new five-year contract with BHP Nickel West. The arrangement will see Alliance provide charter services out of Perth for Nickel West, which was the carrier’s first customer in Western Australia starting in 2006.
