Alliance Airlines' E190 aircraft order from AerCap delayed

Alliance Airlines said in stock filing on the Australian Stock Exchange on April 26, 2024, that the deliveries of its 30 E190s purchased from AerCap in 2023 as part of its airline acquisition programme, have been delayed. The aircraft were originally set to be delivered between 2023 and 2026, with Alliance purchasing aircraft one at a time over the period. To date, seven of the aircraft have been settled and delivered to Alliance. It had estimated that 17 aircraft would be settled by the end of 2024 and would cost between AUD$182 million and AUD$204 million. However, Alliance now estimates it will receive around 12 aircraft by the end of the year at an estimated cost of AUD$128 million and AUD$144 million. ""Fleet ownership is fundamental to the Alliance business model,"" said Alliance managing director Scott McMillan. ""It underpins our operational performance with Alliance having ultimate control of our fleet units, thus providing flexibility particularly around maintenance."" Alliance said it has entered into a standby vendor financing commitment letter with AerCap for the remaining aircraft from AerCap. Under this facility, Alliance may choose to defer payment for an aircraft by obtaining a loan from AerCap equal to 65% of the net purchase price of the aircraft, with each deferred payment being repayable in equal monthly instalments over a three-year period. Additionally, the Australia and New Zealand Banking Group (ANZ), which has financed Alliance since 2011, has agreed to extend Alliance's existing AUD$67 million term loan facility, which was set to expire in January next year, by a further three years. ANZ will also upsize the facility by a further AUD$50 million facility to fund Alliance's capital expenditure program.