Ann: Significant Fleet Expansion, page-22

Some google searching suggests the the Embraer E190 has:

• A range of 2,300 nautical miles or 4,260 km
• Take off distances of 2,056 metres for full range through to 1,267 metres for a 500 nm flight.
• US FAA approval for etops of 120 minutes

This would suggest that the aircraft can fly non-stop between most Australian mainland city pairs, something that the F70 and F100 can’t. It also opens up more direct flying on charters on flights from the Australian East Coast to New Zealand and from Queensland to Pacific Island airports. The take off distance may not work on some of the strips that Alliance use for FIFO charters suggesting the Fokker fleet will remain the mainstay of at least some of these services. The E190’s therefore appear primarily destined for Virgin wet lease services, Alliance’s expanded RPT services and ad how charters.

Alliances risk profile will be reduced if Virgin 2.0 opts for expanded wet lease arrangements to cover its fleet simplification and fleet number reduction plans, rather than Alliance starting its own RPT services to fill the void left by Virgin’s retrenchment.

My assumption is that Alliance management have firm plans on the use of 14 aircraft in a manner that doesn’t expose Alliance to significant risk, rather than simply buying them because the price was too good to turn down. The media coverage this week did suggest the price of these aircraft was half what it was 12 months ago suggesting the plan has been a long time in its gestation (I.e. Alliance was making enquires to purchase these aircraft 12 months ago).

Hopefully E190’s are an upstanding success and the options over a 5 further aircraft provide further upside. Has anyone seen a reference as to the term and exercise price of the options?