Alliance Airlines Sells 5 Fokker 50s For $4.6 Million

Alliance #Airlines has announced the sale of five Adelaide-based #Fokker 50 #turboprops and the retirement of longtime #CEO Lee #Schofield just two days before the company releases its annual financial results. The unrelated occurrences highlight the end of Alliance's days as a turboprop operator and add to the airline's hectic year as a fly-in, fly-out (#FIFO) and charter service.

The associated spare engines, components, tools, and ground support equipment are all included in the transaction. VH-FKO, VH-FKV, VH-FKW, VH-FKX, and VH-FKZ are the five aircraft. Ages of the five Fokkers range from over 27 to over 33. Up to the recent introduction of Embraer aircraft, the airline's fleet was entirely made up of Dutch-built Fokkers, which have proven to be exceptionally well-suited to Australian FIFO and charter operations.

The largest operator of Fokker aircraft is Alliance Airlines. Throughout addition to the Fokker 50s, the airline operates out of a number of sites in Australia with 25 Fokker 100, 14 Fokker 70, and 20 Embraer E190 aircraft. Additionally, Alliance Airlines maintains the largest inventory of Fokker parts and accessories worldwide.

The five Fokkers were sold by the Brisbane-based airline to an unnamed buyer for AU$4.6 million. A non-cash accounting write-down of AU$12.1 million will be incurred as a result of the sale and will be recorded in the 2022 fiscal year. However, due to fleet simplification, crew and engineering redeployment, and the transformation of Alliance's Adelaide base into an all-jet operation, the sale will generate in continuous yearly cost savings. Estimated annual savings amount to AU$4.4 million.

The recognisable Fokker turboprops are frequently seen at Adelaide Airport (ADL), and they were largely used to fly between Adelaide and Olympic Dam (OLP) to service BHP's copper and uranium mining activities there. However, OLP's runway has just been improved to accommodate jets. The Fokker turboprops are no longer needed because BHP and the FIFO workers have expressed a preference for the Fokker and Embraer jets. "The fleet of Fokker 50s has undergone a review by the corporation, which includes using the turboprops for current and new clients. These clients overwhelmingly preferred jet aircraft for their charter services, "According to Alliance Airlines' stock market filing on Monday. "Additionally, it was determined that the alternate, shorter routes with less passenger requirements were not essential to the Alliance's operations. Therefore, it was decided that the turboprop fleet should be prematurely retired and then sold."

Alliance Airlines anticipates receiving the $4.6 million from the transaction during the current quarter. The airline adds that they anticipate the use of their remaining Fokker aircraft for another ten years.

Meanwhile, Alliance Airlines said in a separate market update that its long-serving and well-liked CEO and Executive Director Lee Schofield had resigned effective immediately. Mr. Schofield left his position for private reasons.

"The Board would like to extend its heartfelt gratitude to Lee for his dedication and support of Alliance over the past ten years, particularly over his last seven years as Chief Executive Officer. We wish him the best "Steve Padgett, chairman of Alliance, remarked. Scott McMillan, the current managing director of Alliance Airlines, will become the new CEO. The market will close on Wednesday, August 10 after which Alliance Airlines will reveal its yearly results.