Alliance Aviation Services and Qantas finalise revised wet lease agreement
Alliance Aviation Services negotiated (05-Aug-2026) materially revised terms for its wet lease agreement with Qantas Airways, and plans to "align the business with the reduced fleet and flying requirements of the revised agreement". The revised agreement includes:
- An increase in pricing commencing from 01-Jul-2026;
- A revised annual price escalation mechanism to better reflect future cost increases;
- A staged reduction from 30 aircraft to 23 aircraft over the course of FY2027, reflecting a planned reduction in flying hours, reducing Alliance's committed capital and enabling alternative opportunities for these aircraft.
Alliance confirmed it will "rightsize its business to better align its workforce and operating model with future operational requirements". Alliance will commence a phased consultation process with its workforce over the coming months and will "continue to identify opportunities to simplify operations and improve efficiency". [more - original PR]
Background ✨
Alliance Aviation Services chairman James Jackson said FY2025 ended 30-Jun-2025 delivered record 113,000 flying hours and revenue rose 19% to AUD769.7 million, while rising costs and higher depreciation reduced statutory profit before tax 4.9% to AUD82.1 million1. Alliance also prioritised negotiating an out-of-cycle ACMI pricing increase after its 2021 contract expanded to 30 E190s, with the final aircraft delivered in Feb-20251.