Australia’s Alliance Airlines has lowered its fleet expansion expectations for the year after reporting delays to the delivery of the Embraer E190 aircraft it has on order.
The charter airline said it now expects just 12 aircraft to be delivered in 2024, five fewer than the 17 it had originally expected in its 2024 outlook, at a cost of between A$128m ($83.6m) and A$204m ($133m).
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The company launched its 2023 Aircraft Aquisition Programme in February 2023 after signing a sale and purchase agreement for 30 E190 jets with leasing company AerCap for deliveries between 2023 and 2026, but only seven of the planes have been added to its fleet so far.
Despite this, managing director Scott McMillan highlighted the importance of the programme and said it was still going well for the company, which has also just received a three-year extension and A$50m upsize on a A$67m term loan facility with banking group ANZ.
The facility builds on the airline’s $100m private placement shelf facility it agreed with Pricoa Private Capital in 2023, a deal which it said could be used to fund future aircraft settlements.
McMillan said: “Fleet ownership is fundamental to the Alliance business model. It underpins our operational performance with Alliance having ultimate control of our fleet units, thus providing flexibility, particularly around maintenance.
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By GlobalData“The 2023 Aircraft Acquisition Programme is a significant growth initiative we are currently successfully implementing. Securing funding against this initiative, highlights our strong financial status.”
While exact reasons for the delay in the delivery of the aircraft from AerCap, the largest commercial aircraft owner in the world, was not revealed by Alliance, the news continues a trend of delays for aircraft deliveries across the industry.
The industry’s two largest manufacturers Boeing and Airbus have both been hit by delays with the US company forced to slow production amid concerns about its quality control and its French competitor reportedly dealing with supply chain issues.
