Alliance Airlines Discussion

[ozfflyer]

Alliance seems to be getting bigger all the time.

They now have some enormous number of F100s & F70s.

There are now something like 63 x F100s in OZ.

Will Alliance keep taking over thin Virgin routes ? Makes sense, if Virgin have shortage of 737 pilots & Virgin have some thin routes, where can’t justify a 737-700.

 

[Saab34]

It will be very interesting to see if the ACCC approve the Qantas investment. Might change a few things going forward as I doubt Virgin would want to be involved long term if QF own part or a large chunk of it.

 

[AIRwin]

https://inqld.com.au/business/2020/08/03/alliance-buys-new-aircraft-in-next-expansion-step/

 

[eric2011]

I have just been booked onto Alliance, first time ever. Can anyone tell me what to expect. Can you do seat allocations etc

 

[Muppet501st]

I have just been booked onto Alliance, first time ever. Can anyone tell me what to expect. Can you do seat allocations etc

you can select seats- i go for row 2 on the port side, 2 on the left, 3 seats on the right.
I find the seats are wider, along with the armrests. Usually get more snacks than on VA metal.
No wifi, but VA inflight entertainment.

 

[docjames]

https://inqld.com.au/business/2020/08/03/alliance-buys-new-aircraft-in-next-expansion-step/

Geez they must
a) be confident of ongoing/forward demand
b) got them cheap

 

[eastwest101]

Geez they must
a) be confident of ongoing/forward demand
b) got them cheap

I bet they got them cheap - maybe its just a test run, now that they own all the Fokker F100s and F70s in the world maybe they are just dipping their toe into the E190 and seeing what the economics and reliability of the E190 is actually like. I expect that if you do get them cheap enough the economics will stack up for Alliance.

 

[jakeseven7]

I bet they got them cheap - maybe its just a test run, now that they own all the Fokker F110s and F70s in the world maybe they are just dipping their toe into the E190 and seeing what the economics and reliability of the E190 is actually like. I expect that if you do get them cheap enough the economics will stack up for Alliance.

Maybe they scraped through the wreckage of VA1 and grabbed their old E190s

 

[AIRwin]

Maybe they scraped through the wreckage of VA1 and grabbed their old E190s

They are buying from Copa Airlines?

 

[HS-TQE]

Maybe they scraped through the wreckage of VA1 and grabbed their old E190s

They are buying from Copa Airlines?

On another note, the bulk of VA's E190s ended up at SA AirLink (subsidiary of another bankrupt carrier - South African Airways).

SA AirLink recently added another 5 ex-VA E190s that spent time parked in the USA just prior to the COVID hit.

 

[Captain Halliday]

Interesting interview with the Alliance Airlines CEO on how they turned a record profit during Covid-19.

 

[AIRwin]

QQ has received CASA approval to operate E190:

https://company-announcements.afr.com/asx/aqz/a05edf79-9286-11eb-aa66-a65b42e68e53.pdf

 

[markis10]

I would expect the subsidiary pilots at this one to strike this year over EBA negotiations. And so they should.

NJS have an empty roster when it comes to A220 courses to meet the needs of incoming frames. Alliance has an announcement of results due later today, word is they are losing crew in great numbers, wonder what the future holds for wet leases with QF?

 

[Saab34]

NJS have an empty roster when it comes to A220 courses to meet the needs of incoming frames. Alliance has an announcement of results due later today, word is they are losing crew in great numbers, wonder what the future holds for wet leases with QF?

The wet lease appears to go until 2028.

I thought it was just covering until all the 220s arrive? So they might not need the wet lease after 2028? Looks like it’s slowly being scaled down as more 220s arrive, probably works if Alliance pilots are all leaving.

 

[markis10]

The wet lease appears to go until 2028.

I thought it was just covering until all the 220s arrive? So they might not need the wet lease after 2028? Looks like it’s slowly being scaled down as more 220s arrive, probably works if Alliance pilots are all leaving.

Alliance failed to publish results as promised last night, they did send an internal email saying redundancies in BNE for pilots and engineers as well as engineers in ADL were now on offer. Should have clarity soon.

 

[Saab34]

I can see they have released market updates this morning. It looks like earnings guidance has slipped a further 20% compared to the last guidance in November.

They seem very clear in the results, the QF wet lease is unviable and seems to be sinking the whole company. I don’t know what levers they can pull if the customer isn’t going to stump up more funds, they seem to allude to that path if that eventuates. Alliance didn’t do the homework when it came to writing up and forecasting contract budgets, seems like Qantas has done very well out of this.

 

[AIRwin]

Sounds like a reversal of fortunes from just a few years back

 

[Saab34]

Share Price down 70% in 6 months, 15% today already.

More pain to come if they can’t pull more cash out of Qantas.

 

[Harrison_133]

A couple of key points from today's results:

• Negotiations continue around a "commercially unviable and cash flow negative" wet-lease arrangement with a major customer (i.e. Qantas)
• Fokker fleet to be progressively retired over the next 4-5 years with planning for fleet renewal underway
• Aircraft and non-core assets identified and listed for sale, and an organisation wide staffing review commenced

 

[markis10]

Negotiations continue around a "commercially unviable and cash flow negative" wet-lease arrangement with a major customer (i.e. Qantas)

That’s old news for some time, the key point is that the board is now seriously looking at alternative outcomes if negotiations fail.