Australia’s Alliance Aviation has executed two letters of intent (LoIs) covering the sale of six Embraer 190 airframes minus their GE Aerospace CF34 powerplants, alongside a separate deal to sell 13 surplus Rolls-Royce Tay engine cores.
Under the first two agreements, the carrier will sell six E190s “that have been or will be purchased by Alliance over the next nine months,” it says.
Alliance in February 2023 agreed to purchase a package of 30 E190s from lessor AerCap, principally to gain access to spare engines. The first delivery from the LoI will occur “later this month.”
The six aircraft covered by the LoIs will be flown directly from the delivery point in the USA to Europe where their 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 CF34-10 engines for Alliance’s growing E190 fleet, and this transaction forms an important part of this strategy,” says Alliance managing director Scott McMillan.
An additional agreement will see Alliance sell 13 “surplus, time expired, or unserviceable” 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 powerplants, it says.
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 comprises 37 Fokker 70/100s, and 46 E190s. It has committments for an additional 17 E190s. The carrier owns its entire fleet.
