Alliance plans to keep Fokkers flying for next decade

Alliance Aviation Services says it has plans to ensure its all-Fokker fleet keeps flying for the next decade.

The primarily fly-in/fly-out and charter operator has 15 Fokker 100s, eight Fokker 70LRs and five Fokker 50 turboprops, having sold two Fokker 100s to Virgin Australia in the past year that were surplus to requirements.

Alliance managing director Scott McMillan said there was still available capacity to be extracted from the existing fleet, particularly “away from the traditional mid-week demand peaks”.

“Our fleet strategy remains simple as we continue to develop our F70 capability to meet the changing needs of our customers in the pursuit of operational and cost efficiency,” McMillan told shareholders at the company’s annual general meeting on Monday in prepared remarks.

“As we look to the future, I know that Alliance has the right fleet for its service offering. It must therefore work with its partners to prolong the life of these reliable aircraft.

“Alliance continues to look for ways to provide cost effective solutions to support our reliable Fokker fleet for the next eight to 10 years.”

In August, the company announced it was closing its Brisbane heavy maintenance base and sending its all-Fokker fleet to Lufthansa subsidiary Austrian Technik Bratislava for regular heavy maintenance checks. The move reduced capital expenditure by about A$20 million a year, Alliance said at the time.

McMillan said the partnership with Austrian Technik was performing well.

“We will continue to focus on revenue opportunities, invest in aircraft maintenance and secure access to a pipeline of spare parts to support the flying activities of the Fokker fleet for many years to come,” McMillan said.

Alliance chairman Steve Padgett told shareholders the company remained committed to “revisiting the payment of a dividend for the year ended 30 June 2016”.

The company did not pay a dividend in 2014/15 as it continued to work on changes to its operations.

Padgett said the focus for the period ahead was to continue to focus on developing new revenue sources and to diversify the business.