Category Archives: Alliance Airlines

QANTAS to acquire Alliance Aviation (Alliance Airlines)

QANTAS Airways has made this announcement:

Qantas has reached an agreement to fully acquire Australian-based operator, Alliance Aviation Services Ltd (Alliance Airlines), enabling the national carrier to better serve the growing resources sector.

The agreement, which is subject to a vote from Alliance shareholders and competition clearance, would see Alliance become a wholly-owned part of the Qantas Group.[1]

There is no change to Qantas’ arrangements with Alliance as a result of today’s announcement given the approvals required, which would take a minimum of several months to secure.

Alliance has a fleet of 70 jet aircraft that seat up to 100 people each, making them well suited to charter operations. Between these charter services and a small number of passenger routes that overlap with large mine sites, Alliance accounts for around 2 per cent of the total domestic market.

The national carrier is Alliance’s biggest single customer, with a long-term agreement that sees Alliance operate up to 18 newly acquired E190 jets for QantasLink. This arrangement has helped open new direct routes and increase frequency across regional Australia.

Qantas bought just under 20 per cent of Alliance in February 2019 and at the time flagged its long-term interest in acquiring 100 per cent of the airline. The ACCC investigated that minority holding for three years and made no findings that it lessened competition.

Under the agreement announced today, the remaining 80 per cent would be acquired through a scheme of arrangement where Alliance shareholders receive Qantas shares worth $4.75[2] for each Alliance share they hold[3], representing a 32 per cent premium to Alliance’s volume weighted average price for the past three months. Qantas would issue new shares valued at approximately $614 million in a transaction that is expected to be EPS accretive for Qantas shareholders, before synergies.

Qantas has advised the ACCC of today’s announcement and provided detail of the anticipated benefits to customers. Qantas will continue to update the market on expected completion timing as the competition clearance and Alliance shareholder vote processes progress.

CEO Commentary

Qantas Group CEO Alan Joyce said acquiring the remaining shares in Alliance would mean QantasLink can better compete in the highly competitive charter segment, particularly given the shared fleet type of Fokker aircraft.

“Alliance’s fleet of Fokker aircraft are perfect for efficiently serving resources customers in WA and Queensland. They also have a big inventory of spare parts that would significantly extend the practical life of a combined fleet of around almost 70 Fokkers.

“Keeping these aircraft operating reliably for longer than either carrier could achieve by themselves will help keep costs down, which is ultimately good news for charter customers. There are also benefits from bringing together our operations planning and training facilities.

“The resources sector continues to grow and any new tender for airline services will be very competitive. It makes a lot of sense for us to combine with Alliance to improve the services we can offer, which is a positive for both airlines as well as the travelling public.

“We’ve opened up several new passenger routes using up to 18 of Alliance’s E190s, so bringing all 33 of these aircraft, plus their crews, into the Qantas Group would really expand what we could achieve.

“We plan to extend our program of guaranteed lower fares for residents in those few communities where Alliance operates its own passenger services, as well as access to our Frequent Flyer program,” added Mr Joyce.

[1] The agreement is a Scheme Implementation Deed, a copy of which is attached to the ASX announcement detailing the acquisition of same date by Alliance.

[2] The scheme consideration will be reduced by the amount of any dividends paid by Alliance in the ordinary course from now until completion of the acquisition.

[3] The number of Qantas shares received by Alliance shareholders will be determined using the volume weighted average price of Qantas shares in the 20 business days prior to the scheme record date (prior to transaction completion).

Alliance Airlines Route Map:

Alliance Airlines aircraft photo gallery:

QANTAS to establish a new Embraer E190 base at Darwin, operated by Alliance Airlines, extends the Darwin – London route

QANTAS Group has made this announcement:

The Northern Territory is set for an employment and tourism boost with Qantas announcing plans to set up a new Embraer E190 jet base at Darwin Airport.

At least four E190s will be based in Darwin to service key QantasLink routes across Australia, as well as a new international passenger service from Darwin to Dili.

The E190 jets feature both business and economy cabins with up to 97-seats and a five-hour range. They are being deployed on Qantas’ network as part of a three-year deal with Alliance Airlines to ramp up domestic flights and increase connections and schedules between smaller capital cities and regional centers.

With support from the Northern Territory Government, basing the four aircraft in Darwin will bring an additional 90 jobs to the Territory, including pilots, cabin crew and engineers recruited by Alliance Airlines.

The size, range and economics of the aircraft have opened up more flights on existing routes as well as new routes that wouldn’t be viable with larger aircraft, including three new domestic routes from Darwin to Canberra, Cairns and Townsville.

Qantas has been operating weekly flights between Darwin and Dili since February 2021 in partnership with the Australian Government to maintain critical passenger and freight links with Timor-Leste. This service will now become a permanent commercial route with the E190 aircraft with three flights per week, ramping up to five flights each week from July.

All E190 aircraft activated as part of the deal with Alliance will progressively be painted in QantasLink livery.

The Qantas Group currently operates a total 18 routes from Darwin, Alice Springs and Ayers Rock Airports and connects Darwin directly to eight domestic destinations.

Qantas has also announced that it will extend the operation of its double daily Australia to London flights via Darwin until June.

International flights are subject to Government and Regulatory approval.

In other news, Qantas will keep flying its double daily direct flights from Australia to London via Darwin following ongoing uncertainty around the reopening of the West Australian border and testing requirements for passengers transiting through Singapore.

When international travel recommenced in November last year, but Western Australia remained closed, Qantas temporarily re-routed its Perth to London service via Darwin.

Qantas worked closely with the Northern Territory Government to set up Darwin as an alternative hub, allowing passengers to arrive in or transit through the Territory capital as they returned home to Australia or travelled overseas to reunite with loved ones.

The Perth to London service was scheduled to revert to operating via Perth in April, but with the West Australian Government yet to confirm a reopening date for the state, Qantas will continue to operate the route via Darwin until at least June 2022.

To streamline transit arrangements for passengers, Qantas will also continue to operate the Sydney to London flight via Darwin instead of through Singapore until June 2022.

Alliance Airlines Route Map:

Alliance Airlines aircvraft photo gallery:

QANTAS expands its E190 relationship with Alliance Airlines

QANTAS Airways has made this announcement:

  • Qantas expands deal with Alliance Airlines for additional capacity using Embraer E190 jets
  • More services for Adelaide-Canberra route announced today; others to follow
  • Jetstar Airways redeploys more aircraft from Singapore

The Qantas Group is preparing for continued growth in domestic travel demand, with additional aircraft to be made available for Qantas and Jetstar flying.

Additional E190s for QantasLink

The national carrier has announced an expansion of its three-year deal with Alliance Airlines, which provides QantasLink with capacity using Alliance’s Embraer E190 regional jet aircraft and the flexibility to respond to changing market conditions.

The expanded agreement will see the airline increase its options under this deal from 14 jet aircraft to a total of 18. Of this, three are already flying with another five to enter service by October. The E190s will be painted in QantasLink livery and are part of Qantas growing its domestic capacity to at least 107 per cent of pre-COVID levels in FY22.

The first of the 94-seat E190 jets started flying on the QantasLink network last month. The jet’s five-hour range makes it well suited to linking regional centres with smaller capital cities. The introduction of E190s also frees up Qantas’ Boeing 737 aircraft to be redeployed across the domestic network, enabling the airline to launch a number of new routes and add frequencies on existing ones.

Canberra-Adelaide is the latest route to benefit from additional flights made possible by the E190, with frequencies to double from nine per week to 18 per week from mid-July.

Jetstar

Jetstar boosts its Australian-based A320 fleet

Demand for low-cost leisure travel remains strong due to closed international borders and structural changes in Australia’s aviation market. As a result, Jetstar’s Australian domestic network is set to grow to 120 per cent of its pre-COVID schedule in FY22.

To help meet the increased demand, three Airbus A320 aircraft will be temporarily redeployed from Jetstar Asia in Singapore while international travel in the region faces a slower recovery.

These aircraft join the six Airbus A320 aircraft on loan to Jetstar Airways from Jetstar Japan and up to five Boeing 787-8 aircraft set to operate domestically until international travel resumes (previously announced).

CEO COMMENTS

Qantas Group CEO Alan Joyce said:

“Since travel demand started to recover about a year ago, our strategy has been to think creatively about how we use our fleet to add capacity back in, generate revenue and get more of our people back to work. That’s why we now have 787s flying domestically and A320s on loan from Jetstar airlines in Asia.

“Expanding our long-standing relationship with Alliance gives us access to a different aircraft type without spending any capital. The E190 is perfect for connecting capital cities and regional centres. Its size, range and economics have already let us start seven new routes that wouldn’t have worked with our existing fleet.

“When you combine our fleet, network, loyalty program, lounges, and the fact we offer both full service and low fare travel options, it puts the Group in a good position to deliver for the traveling public as we emerge from COVID.

“Victoria represents about 20 per cent of our total network and with restrictions in Melbourne easing and as borders start to reopen, we expect to see a quick rebound in travel demand just as we have in other cities when lockdowns ended. Our forward bookings certainly suggest that’s going to be the case.”

Alliance Airlines aircraft photo gallery:

QANTAS adds seven new routes and puts its Dreamliners on domestic routes

VH-ZNI

QANTAS Airways has made this announcement:

Qantas customers can now book seven new domestic routes and travel on more widebody aircraft between major capital cities to help meet strong demand for domestic travel across Australia.

The new routes – Townsville to Adelaide/Melbourne/Sydney, Adelaide to Cairns/Hobart, Sydney-Uluru and Perth-Gold Coast – provide direct connections and reduce travel time for customers. They bring the total number of routes Qantas and Jetstar have added since the start of the pandemic to 45.

Five of the routes will be operated by Embraer E190 regional jets as part of QantasLink’s partnership with Alliance Airlines. The first Qantas flights operated by the 94-seat E190s took off on May 25 between Adelaide, Darwin and Alice Springs.

Customers will also see more widebody aircraft with Business Suites on flights between the East Coast capital cities into Perth and Darwin.

Usually used for long haul international flights including Perth-London, the 236-seat Boeing 787-9 Dreamliner will begin operating up to nine Sydney to Perth flights per week.

Widebody Qantas Airbus A330-200 aircraft, which serviced international routes into Asia, will operate on more flights into Darwin from Sydney and Brisbane, and also into Perth from Sydney and Melbourne. These will be added to the A330s already flying on east-west routes.

The additional flying will see Qantas’ capacity exceed 100 per cent of pre-COVID levels in the coming months and the Group’s market share around 70 per cent.

NEW ROUTES

Route Start Date Return flights per week Aircraft
Adelaide – Townsville August 2021 3 per week E190
Adelaide – Cairns August 2021 4 per week E190
Adelaide – Hobart September 2021 Up to 7 per week E190
Sydney – Townsville September 2021 7 per week E190
Melbourne – Townsville September 2021 7 per week E190
Perth – Gold Coast September 2021 3 per week B737
Sydney – Uluru March 2022 5 per week B737

The new flights add to Jetstar’s existing services across six of the routes, providing a range of travel options for Qantas Group customers.

 

ADDITIONAL WIDEBODY FLYING

Route Added or upgauged flights Aircraft Total weekly flights (all aircraft)
Sydney-Perth Up to 9 per week 787 Dreamliner 34
Up to 4 per week A330
Melbourne-Perth Up to 24 per week A330 37
Sydney-Darwin Up to 7 per week A330 12
Brisbane-Darwin Up to 3 per week A330 9

 

QANTAS GROUP ROUTES ANNOUNCED OR COMMENCED FLYING FROM JULY 2020

Route Airline
Sydney-Byron Bay Qantas
Brisbane-Tamworth Qantas
Sydney-Orange Qantas
Canberra-Gold Coast Qantas
Brisbane-Port Macquarie Qantas
Perth-Hobart Qantas
Canberra-Sunshine Coast Qantas
Canberra-Cairns Qantas
Hobart-Gold Coast Jetstar
Sydney-Merimbula Qantas
Brisbane-Hobart Qantas
Sydney-Launceston Qantas
Sydney-Mildura Qantas
Canberra-Hobart Qantas
Melbourne-Sunshine Coast Qantas
Melbourne-Newcastle Qantas
Melbourne-Merimbula Qantas
Sydney-Griffith Qantas
Melbourne-Mount Gambier Qantas
Adelaide-Mount Gambier Qantas
Melbourne-Wagga Wagga Qantas
Melbourne-Albury Qantas
Melbourne-Hamilton Island Jetstar
Perth-Onslow Qantas
Melbourne-Coffs Harbour Qantas
Brisbane-Coffs Harbour Qantas
Canberra-Ballina (Byron Bay) Qantas
Gold Coast-Auckland Qantas
Sydney-Hervey Bay Jetstar
Brisbane-Albury Qantas
Brisbane-Cooma (Snowy Mountains) Qantas
Sydney-Cooma (Snowy Mountains) Qantas
Melbourne-Burnie Qantas
Canberra-Darwin Qantas
Adelaide-Gold Coast Qantas
Cairns-Newcastle Jetstar
Melbourne-Busselton Jetstar
Auckland-Cairns Qantas

Top Copyright Photo: QANTAS Airways Boeing 787-9 Dreamliner VH-ZNI (msn 66073) PAE (Nick Dean). Image: 947836.

QANTAS aircraft slide show:

QANTAS to use five Embraer 190s from Alliance Airlines at Adelaide

QANTAS Airways has made this announcement:

  • Qantas to activate a further five E190 jets
  • Aircraft to be based in Adelaide, creating hundreds of jobs
  • New routes, extra 1 million seats in and out of Adelaide

Adelaide will be the home of five Embraer E190 aircraft as Qantas continues to boost domestic flights in response to growing leisure and corporate travel demand.

The E190s are 94-seat jets with a five-hour range which are being deployed on Qantas’ network as part of a three-year deal with Alliance Airlines. The deal provides the national carrier with the capacity provided by up to 14 jet aircraft, depending on market conditions. This announcement brings the number of aircraft activated as part of the agreement to eight.

The aircraft will be painted in QantasLink livery and will help Qantas to grow its domestic capacity to 107 per cent of pre-COVID levels in FY22.  Jetstar is expected to reach 120 per cent of its pre-COVID capacity as the only dedicated low cost carrier in Australia and the uptick in local leisure demand.

Note: The aircraft will be operated by Alliance Airlines.

NETWORK

The decision means Qantas will launch a new Adelaide-Gold Coast service in time for the winter school holidays.

From June 25, 2021, South Australians will be able to fly direct to the Gold Coast with Qantas, with four return services per week, increasing to daily during school holiday peaks. To celebrate the launch Qantas is offering special fares from $149 one-way*.

A number of additional routes from Adelaide will be announced in the coming weeks.

Qantas will also begin flying between Darwin and Canberra using E190 aircraft from June 21, 2021.

The two new routes bring the total number Qantas and Jetstar have announced since the start of the pandemic to 38, responding to the fact more Australians are holidaying domestically.

The five E190 aircraft can carry almost 1 million additional passengers to-and-from Adelaide each year.

The use of E190s will also free up Qantas’ Boeing 737-800 aircraft to be redeployed across the domestic network. All Qantas domestic crew have returned to flying.

Qantas is also today announcing a number of capacity increases for South Australia, including an additional daily return flight from Adelaide to Sydney and Melbourne.

The national carrier will also more than double services between Adelaide and Mt Gambier from five to 12 flights per week from July 1, 2021.

Route Map – June 2020:

Alliance Airlines aircraft photo gallery:

 

Alliance orders 16 Embraer 190s via Jetran LLC

Alliance Aviation (Alliance Airlines) of Australia has ordered 16 additional Embraer 190 aircraft via leasing company Jetran.

The new aircraft will eventually replace the older Fokker jet fleet.

The first E190 (VH-UYZ) has arrived from Costa Rica.

Route Map:

Alliance Airlines introduces the “Pink Lady”

Alliance Airlines made this announcement:

Introducing Alliance Airlines’ ‘Pink Lady’, supporting Australians affected by breast cancer:

This month, Alliance will officially launch the latest addition to our fleet of aircraft in support of Australians affected by breast cancer. Alliance’s Pink Lady will redefine ‘pretty in pink’ as she flies in her Breast Cancer Network Australia (BCNA) livery throughout Australia.

The pictured Fokker 70 VH-NUU arrived in Townsville on August 19.

QANTAS acquires a 19.9% share of Alliance Airlines

Alliance Airlines (Australia) Fokker F.28 Mk. 0100 (Fokker 100) VH-XWS (msn 11314) BNE (Ton Jochems). Image: 945035.

The QANTAS Group has issued this statement:

The QANTAS Group has taken a 19.9 percent shareholding of Australian-based charter operator, Alliance Airlines.

Alliance Airlines is a significant service provider to the resources sector, which continues to stimulate travel demand in Western Australia and Queensland in particular. Alliance is a profitable, well-managed business with high levels of operational maturity. It is also a long-term provider to the QANTAS Group and flies regional services on behalf of the national carrier.

 

The 19.9 percent stake was acquired for an average price of $2.40 per share and for a total cost of $60 million.

QANTAS expects to ultimately seek regulatory approval from the ACCC to build on its current shareholding, with a longer-term view of taking a majority position in Alliance Airlines in order to better serve the charter market by unlocking synergies.

In the meantime, QANTAS is supportive of the ‘business as usual’ approach of Alliance Airlines management and is not seeking Board representation.

Top Copyright Photo (all others by the airline): Alliance Airlines (Australia) Fokker F.28 Mk. 0100 (Fokker 100) VH-XWS (msn 11314) BNE (Ton Jochems). Image: 945035.

Alliance aircraft slide show:

Alliance Airlines Route Map:

 

Virgin Australia announces services between Brisbane and Alice Springs

Airline Color Scheme - Introduced 2002

Virgin Australia on March 19, 2018 announced it will commence services between Brisbane and Alice Springs, increasing its regional domestic network offering.

From June 19, 2018, Virgin Australia will operate a twice-weekly return service on Tuesdays and Thursdays under a wet lease agreement with Alliance Airlines, operated by Alliance’s Fokker 100 and Fokker 70 fleet of aircraft.

 

Services between Brisbane and Rockhampton, currently operated by Alliance’s Fokker 100 fleet, will also benefit with Virgin Australia upgrading two existing return flights to its Boeing 737 aircraft, adding over 300 seats per week in to the region.

Brisbane-Alice Springs Schedule

ROUTE FLIGHT NUMBER DEP/ARR DAYS OF THE WEEK
BNE-ASP VA1023 1015/1305 Tuesdays and Thursdays
ASP-BNE VA1026 1340/1700 Tuesdays and Thursdays

Copyright Photo: Alliance Airlines (Australia) Fokker F.28 Mk. 0100 (Fokker 100) VH-XWN (msn 11278) BNE (Peter Gates). Image: 906002.

Alliance Airlines aircraft slide show:

Virgin Australia aircraft slide show:

FlyPelican to offer flights between Newcastle and Adelaide, operated by Alliance Airlines

Alliance Airlines (Australia) Fokker F.28 Mk. 0100 (Fokker 100) VH-FKF (msn 11365) BNE (Peter Gates). Image: 906805.

FlyPelican issued this statement:

2018 is off to a flying start, with Newcastle Airport and FlyPelican excited to announce direct jet services between Newcastle and Adelaide from March 2018.

FlyPelican is offering the two-hour nonstop service three times per week from Newcastle on Tuesdays, Wednesdays, and Fridays, with the potential to add more flights if demand is strong. Flying Fokker jet aircraft seating 80 or 100 passengers (above) and offering in-flight catering and no charge for checked baggage allowance, the Newcastle-Adelaide service is ideal for business and leisure.

 

Newcastle Airport, the gateway to the region, now connects with nine domestic destinations and onwards internationally to over 65 locations in just one stop.

 

Newcastle to Adelaide

Departs

Arrives

Duration

Mon

Tue

Wed

Thur

Fri

Sat

Sun

09:50

11:30

2hr 10min

18:35

20:15

2hr 10min

19:50

21:30

2hr 10min

Adelaide to Newcastle

Departs

Arrives

Duration

Mon

Tue

Wed

Thur

Fri

Sat

Sun

06:30

09:10

2hr 10min

15:15

17:55

2hr 10min

16:30

19:10

2hr 10min

*FlyPelican is partnering with Alliance Airlines who will operate the flights.

FlyPelican Route Map:

Top Copyright Photo (all others by FlyPelican): Alliance Airlines (Australia) Fokker F.28 Mk. 0100 (Fokker 100) VH-FKF (msn 11365) BNE (Peter Gates). Image: 906805.

Alliance Airlines aircraft slide show: