Australia’s Alliance Airlines has revealed a US$100m deal with Pricoa Private Capital in a profit guidance note filed with the Australian stock exchange.
The filing by the airline, listed as Alliance Aviation Services Ltd, showed that a private placement shelf facility for $100m had been agreed with Pricoa, the principal asset management business of US-based Prudential Financial Inc.
According to the note, the funds can be drawn to fund future aircraft settlements or for working capital requirements. The agreement allows for the issuance of notes over three years in maturities of up to 10 years.
Alliance Airlines is a contract, charter and allied aviation provider which is also known for running fly-in fly-out air charter services for the Australian mining and resources industry.
In addition to the $100m agreement, the guidance note also revealed that Alliance would be expanding its fleet of 33 Embraer E190s with an order for four E190 airframes from Azorra Aircraft Holdings, building on a previous order for 30 of the aircraft from AerCap Ireland in February.
Australian aviation giant Qantas currently owns a 20% stake in Alliance Airlines and made a bid to acquire the remaining 80% of the company in 2022, however this was opposed by the Australian competitions authority in April of this year.
The Australian Competition and Consumer Commission (ACCC) described Alliance as one of the country’s most significant airlines and said that the acquisition could significantly affect the charter services industry.
ACCC Chair Gina Cass-Gottlieb said: “We consider Alliance to be an important competitor to Qantas, and the removal of Alliance is likely to substantially lessen competition threatening increased prices and reduced service quality for customers.”
