Australia’s Alliance Aviation has executed letters of intent for the sale of six Embraer E190 regional jets and 13 surplus engine cores.
Under the first two LOIs, the carrier will sell six E190s “that have been or will be purchased by Alliance over the next nine months,” says Alliance.
The first delivery from this LOI will occur “later this month.”
The E190s are part of a 30-aircraft deal Alliance entered in February 2023 with lessor AerCap.
The aircraft will be flown directly from the delivery point in the USA to Europe. In Europe, the jets’ GE Aerospace CF34-10 engines will be removed and shipped to Australia.
“It is important to note that the underlying basis for the AerCap transaction was to provide a ready supply of high-quality GE GF34-10 engines for Alliance’s growing E190 fleet, and this transaction forms an important part of this strategy.”
The third LOI will see Alliance sell 13 “surplus, time expired, or unserviceable” Rolls-Royce Tay 620/650 engines to another European operator.
The engines are no longer required for Alliance’s Fokker 70/100 fleet given the recent acquisition of serviceable engines.
Alliance estimates that its cash benefit from the transactions as well as reduced capital expenditure on the airframes will be in the A$20-23 million ($13.4-$15.4 million) range.
Alliance’s fleet stands at 37 Fokker 70/100s, and 46 E190s. It has committments for an additional 17 E190s. The carrier owns its entire fleet.
