Join our daily newsletter At The Bell to receive exclusive market insights
- Alliance Aviation Services (AQZ) has welcomed Qantas Airways’ (QAN) exercise of a wet lease agreement option for additional aircraft
- The company initially agreed to provide Qantas with three E190 aircraft, but will now provide another five
- The first three aircraft will begin services for Qantas later this month, with the extra five starting in late June
- Alliance Aviation Services is up 0.48 per cent and trading at $4.17 per share
- Qantas Airways is up 0.95 per cent and trading at $4.78 per share
Alliance Aviation Services (AQZ) has welcomed Qantas Airways’ (QAN) exercise of a wet lease agreement option for additional aircraft.
In early February, Alliance Aviation and Qantas announced a wet lease agreement between the two companies. Under the agreement, the company initially agreed to provide Qantas with three E190 aircraft, which are set to begin services for Qantas on May 25, 2021.
However, the agreement also provided options for Qantas to call up an additional eleven aircraft from Alliance Aviation, based on market conditions. Today, Qantas has taken partial advantage of that option by calling up five of the eleven available aircraft.
These five additional aircraft will begin operating for Qantas from June 21, 2021 onwards. Each option is for an initial three-year period.
All of the aircraft provided by Alliance Aviation to Qantas will be based in Adelaide.
Qantas has now activated eight E190 aircraft from Alliance Aviation, out of the full 14. The airline has the option to call up six remaining aircraft, which it may exercise in the future if required.
Alliance Aviation’s Managing Director, Scott McMillan, commented on Qantas’ first exercise of its agreement option with the company.
“This is an exciting development for Alliance and further extends on previous wet leasing arrangements that Alliance has had with Qantas,” he said.
“The extension of the arrangements with Qantas is also further confirmation that the E190 is the perfect aircraft to take advantage of the new route network that is developing in the post-COVID aviation recovery,” he added.
Alliance Aviation Services is up 0.48 per cent, trading at $4.17 per share at 1:05 pm AEST. Qantas Airways is up 0.95 per cent, trading at $4.78 per share at 1:39 pm AEST.
