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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