Ann: Alliance acquires an additional two E190 aircraft, page-4

I take this announcement as very positive - AQZ wouldn’t have committed to an additional two aircraft on a whim and therefore reading between the lines they are confident that they can deploy the increased aircraft numbers.

Interestingly:

• the aircraft are going to be painted in Alliance livery which suggests they are not bound for Qantas as part of the 18 aircraft option deal.
• AQZ are keen to get them flying in Australia as soon as possible. My assumption is that they are bound for another wet lease customer. If I were to lay odds, the long awaited Virgin Australia deal may be about to kick off. With increased fleet numbers, a deal to fly two aircraft may no longer be material and therefore may not need to be announced as a price sensitive transaction.

AQZ didn’t take the opportunity to provide a trading update for FY21, however the full year announcement is only six weeks away.