Zero chance of Alliance taking over Rex regional operations in my opinion. The Alliance business model is very much one of an efficient operator of aircraft for a fee that derisks the operation. They have given up virtually all of their RPT operations and now very much concentrate on charter and wet lease flying. These involve a pass through of variable fuel costs to the client such that Alliance is only exposed to costs they can manage. Further, they have expanded significantly so both their balance sheet and operational capability are stretched. Alliance may however be interested in picking up any FIFO work that NJE can not longer deliver on or where the customer sees NJE as risky going forward.
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