Alliance Aviation Services (ASX: AQZ) has confirmed the sale of 12 General Electric CF34-10E engines to Beautech Power Systems, a US-based company, for $62.3 million. Alliance Aviation Services provides aviation and maintenance services. The company specialises in providing fly-in, fly-out aviation services for the mining and resources sectors.
The high-thrust, turbofan engines are currently located in Ireland, having been removed from six aircraft frames previously sold to Eirtrade Aviation, based in Dublin. Alliance plans to deliver ten of the engines to Beautech before the end of the month, with the remaining two engines to follow in the new financial year.
According to Alliance, this sale aligns with its business model of streamlining operations and improving financial health by selling off surplus, time-expired, or unserviceable CF34-10E engines. The company anticipates that the sale will substantially reduce its inventory value and net debt position for the 2025 financial year. However, Alliance has stated that the sale will not impact its profit guidance for the current financial year.
Alliance Aviation’s managing director, Scott McMillan, noted that the sale had monetised the company’s inventory at values commensurate with current market prices, while also allowing it to take advantage of the current low AUD/USD exchange rate. Beautech’s chief executive officer, Lee Beaumont, stated his company is deeply committed to the CF34 engine platform and is investing significantly into the 10E variant.
