Alliance Aviation Services Limited (ASX:AQZ) Announces Sale of Assets

Asset Sales Overview

Alliance Aviation Services Limited (ASX:AQZ) has executed contracts to sell six Embraer E190 airframes and 13 surplus Rolls-Royce engine cores. The first two contracts involve Scissortail Aviation, LLC and Bellinger Asset Management Pty Ltd for the sale of the airframes. Deliveries will start in December 2024 and conclude by February 2025.

Financial Impact

The estimated cash benefit from these sales and related capital expenditure avoidance is projected between $20 million and $23 million, with most revenue reflecting in the second half of FY25. Additionally, the cessation of the Rolls-Royce Total Care programme will reduce future capital expenditures by approximately $10 million to $15 million per annum from FY26 onward.

Comments from Management

Andrew Evans, Chief Financial Officer of Alliance, stated, “These transactions monetise our surplus inventory and enhance our aviation services business unit, poised for growth.”

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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