Perhaps there is a different answer to the question: “How do you make a million dollars in airlines?”

Is there a similar, successful model like this anywhere else in the world?

Hi @Chagsy good question!!

Based on the regional nature of our huge continent/country, the FIFO scenario for skilled workers and the lack of intent to compete with city to city bums-on-seats airlines.......probably no other global airline like this.... but I could be wrong of course ????

If people want to get a feel for AQZ before the postponed strawman interview. A recording of the 2024 results presentation is available on quartr- https://quartr.com/companies/alliance-aviation-services-limited_14591

Its worth a listen as they give some good commentary on how the business works and whats coming over the next few years. To me this year's results were the step change that I had been expecting for some time, so good to see it occur, and am now looking forward to what they can do with the new planes.

Interesting announcement yesterday followed by MD buying more shares (albeit only ~$50K worth).

Alliance Aviation Services Limited (“Alliance”) (ASX: AQZ)

Letters of Intent signed for the sale of 6 Airframes and 13 Engine Cores

Alliance today announces that is has executed two Letters of Intent (“LOI”) covering the sale of six Embraer E190 airframes and one LOI for the sale of 13 surplus Rolls-Royce engine cores.

Under the first two LOIs, Alliance will sell, to a European company, six Embraer E190 airframes that have been, or will be, purchased by Alliance over the next 9 months.

These aircraft represent six of the 30 aircraft previously announced under the “Aercap Transaction” in February 2023. The first of the deliveries under this LOI is scheduled to occur later this month.

The six aircraft will be flown from the delivery point in the United States direct to Europe, where the engines will be removed and shipped to Australia. The airframes will be delivered and settled at the point of engine removal.

Alliance’s Managing Director, Mr Scott McMillan, commented, “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 that strategy”.

Under the third LOI, Alliance will sell 13 surplus, time expired or unserviceable Rolls-Royce Tay 620/650 engine cores to another European operator.

Delivery of the first three of those engine cores will occur during September 2024

These engine cores are surplus to requirements for the Alliance Fokker 70 and Fokker 100 fleet given the recent acquisition of serviceable engines that will replace the Rolls-Royce “Total Care” programme from 1st January 2025.

Both cash transactions, whilst still subject to final contract, are to complete during FY25. Revenues will flow through the Company’s aviation services operation.

The estimated cash benefit of these sales and resulting airframe capital expenditure avoidance is between $20m and $23m in FY25/FY26.

In addition, the cessation of the “Total Care” programme reduces future annual capital expenditure by approximately $10 to $15m per annum from FY26 onwards.