Alliance Airlines announced that it has exercised a Letter of Intent (LOI) with lessor AerCap to take delivery of the first six Embraer 190s from a deal for 30 aircraft.
But instead of putting them into service, the company will simply remove their GE CF34-10 engines to keep them in stock for its fleet of 39 E190s.
The regional jets will fly from the United States to Europe starting next month, where their engines will be removed and shipped to Australia.
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Alliance has agreed to sell the airframes to an undisclosed European company that will likely scrap them.
“It is important to note that the underlying basis for the Aercap transaction was to provide a ready supply of high-quality GE CF34-10 engines for Alliance’s growing E190 fleet, and this transaction forms an important part of that strategy,” said Scott McMillan, Alliance’s Managing Director.
Expanding fleet
Alliance is a charter and ACMI company with Qantas as its largest customer. Several of its Embraers fly on the carrier’s regional arm.
The E190 fleet has grown in recent years as its Fokker jets have become scarce in the market.
As a sign of this, Alliance has executed a second LOI in which it sold 13 surplus Rolls-Royce TAy engine cores, which power the Fokker 70 and 100.