Alliance Aviation Services Limited (ASX: AQZ), Australasia’s leading provider of contract, charter, and allied aviation and maintenance services, employing over 1,400 staff, has entered a binding agreement with AVIAN Inventory Management for the sale of a majority of its Embraer E190-E1 inventory. The total consideration for the sale is USD32.5 million. This strategic move aims to enhance Alliance’s long-term E190 operational support strategy. AVIAN is recognized as the world’s leading independent supplier of Embraer spare parts, with extensive inventory holdings at its global distribution centre in Orlando, Florida.
Under the terms of the agreement, AVIAN will acquire the existing E190 inventory, excluding engines, undercarriages, and auxiliary power units. This inventory will be relocated to newly established facilities at Brisbane Airport. AVIAN will also leverage its substantial volume of additional E190 inventory from its Orlando headquarters, creating one of the largest Embraer E190 parts holdings globally. This will support Alliance’s expanding E190 fleet and benefit other operators across the Asia-Pacific region.
This transaction, combined with the recent sale of engines to Beautech, is part of a broader initiative to strengthen Alliance’s balance sheet and enhance operational readiness. These transactions are expected to significantly reduce Alliance’s inventory levels and net debt. The company’s current profit guidance for this financial year remains unchanged.
Alliance Managing Director Scott McMillan stated that the partnership will materially increase spare parts holdings in Australia for their growing E190 fleet and other operators. Ian Gurekian, AVIAN Inventory Management CEO & Founder, expressed his pride in being selected by Alliance and noted that this partnership is testament to how their platform can be applied to airlines to release value trapped in aerospace inventory.
