Alliance Aviation Services has announced a significant $160 million impairment on its ageing Fokker aircraft fleet, signalling a strategic shift towards fleet renewal. The company plans to progressively retire these planes while maintaining operational stability.
- $130 million impairment on Fokker F70 and F100 aircraft
- $30 million write-down on Fokker engines, spare parts, and inventory
- Fokker fleet nearing end of economic life, set for progressive retirement
- Embraer E190 fleet valued above book but no revaluation recorded
- Impairments are non-cash and do not affect cash flow or operations
Fleet Review Sparks Major Write-Down
Alliance Aviation Services Limited (ASX – AQZ), Australasia’s leading contract and charter aviation provider, has revealed a substantial $160 million impairment charge related to its Fokker aircraft fleet. This includes a $130 million write-down on Fokker F70 and F100 planes and a further $30 million on associated engines, spare parts, and inventory. The announcement follows a detailed fleet review by the company’s board ahead of its half-year financial results.
While these impairments are significant, Alliance emphasises they are non-cash accounting adjustments that will not impact the company’s cash position or ongoing operations. This distinction is crucial for investors assessing the company’s financial health and operational continuity.
End of an Era for Fokker Aircraft
The Fokker F70 and F100 aircraft, once a backbone of Alliance’s fleet, are now approaching the end of their useful economic life. The company is actively developing a long-term fleet renewal strategy that will see these aircraft progressively retired. This plan includes exploring options for leasing or purchasing replacement aircraft, as well as potential redeployment strategies to optimise fleet utilisation.
Such a transition reflects broader industry trends where ageing aircraft are phased out in favour of newer, more efficient models that offer better economics and environmental performance. For Alliance, this renewal is not just about replacing old planes but positioning the company for sustainable growth in a competitive market.
Embraer Fleet Holds Strong Value
In contrast to the Fokker fleet, Alliance’s Embraer E190 aircraft have been independently valued at approximately $67 million above their carrying value as of 31 December 2025. However, in line with accounting standards, the company has not recognised any upward revaluation in its financial statements. This valuation surplus underscores the relative strength and modernity of the Embraer fleet within Alliance’s overall asset base.
Looking Ahead to Half-Year Results
Investors and analysts will have the opportunity to gain further insight into Alliance’s fleet renewal plans and broader operational initiatives during the company’s half-year financial results release on 19 February 2026. A market briefing is scheduled for the following day, where management is expected to elaborate on the strategic direction and capital requirements associated with the fleet transition.
Given the scale of the impairment and the fleet renewal underway, these upcoming disclosures will be critical for understanding Alliance’s future trajectory and how it intends to balance asset replacement with maintaining service levels to key sectors such as mining, energy, and government.
Bottom Line?
Alliance’s fleet renewal marks a pivotal moment, with investors watching closely for how the company balances transition costs against long-term growth.
Questions in the middle?
- What specific aircraft models will Alliance consider to replace the retiring Fokker fleet?
- How will the fleet renewal impact Alliance’s capital expenditure and financing needs?
- What operational changes or efficiencies might arise from transitioning to a newer fleet?