Alliance Aviation Services Limited (ASX:AQZ), Australasia’s leading provider of contract, charter and allied aviation services announced on 4 February 2021 that it has entered a Wet Lease Agreement with Qantas Airways Limited (ASX:QAN) for the provision of E190 capacity.
Following are the major highlights from the announcement:
- Under the agreement, three E190 aircrafts will be operating for Qantas mid-2021 onwards.
- Qantas will have an option to call on additional eleven aircrafts as per the requirements of the market.
- The two entities have signed the agreement for three years.
- The aircraft will be based in Adelaide and Darwin running on the routes – Adelaide-Alice Springs, Darwin-Alice Springs and Darwin-Adelaide.
- It is anticipated that the transaction will garner a surplus of 5% of total revenue once the first three aircrafts have been fully deployed.
Alliance’s Managing Director Scott McMillan said that this is one thrilling deal for Alliance and strengthens its position as the pre-eminent wet lease operator in Australia and across the Pacific.
Meanwhile, the QAN stock was trading a notch higher at $4.735, up 0.744%, with market capitalisation at $8.86 billion at 3:47 PM AEDT.