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Alliance Aviation Services streamlines business with $62.3m sale of 12 aircraft engines to US customer

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By Imelda Cotton - 
Alliance Aviation Services ASX AQZ sale 12 CF34-10E engines Beautech Power
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Alliance Aviation Services (ASX: AQZ) has confirmed the $62.3 million sale of 12 General Electric CF34-10E engines to US-based Beautech Power Systems.

The high-thrust, turbofan engines are currently in Ireland after being removed from six aircraft frames sold to Dublin-based Eirtrade Aviation.

Alliance will deliver ten of the engines to Beautech before month-end and the remaining two in the new financial year.

Streamlining operations

The Beautech sale aligns with Alliance’s business model of streamlining its business and improving its financial health by selling off “surplus, time-expired or unserviceable” CF34-10E engines.

Alliance expects the sale substantially reduce the company’s inventory value and net debt position for the 2025 financial year.

It will have no impact on Alliance’s profit guidance for the current financial year.

Surplus to requirements

“Most of the engines sold have remaining lives that are surplus to our current requirements and this transaction is consistent with our objective of reducing overall inventory levels, unlocking surplus value and retiring debt,” Alliance managing director Scott McMillan said.

“We are pleased to have formed a strong relationship with Beautech, which is a leading trader and lessor of aircraft engines and is well-situated in the General Electric CF34-10E market.”

Mr McMillan said the sale had monetised Alliance’s inventory at values commensurate with current market prices and the timing allowed it to take advantage of the low AUD/USD exchange rate.

Site visits

Beautech chief executive officer Lee Beaumont and his team made several visits to Alliance’s Brisbane headquarters prior to locking in the purchase.

“We have developed a strong and collaborative relationship with Alliance and we hold its commercial approach and business model in high regard,” he said.

“As the world’s leading lessor and financier of CF34 engines, we are deeply committed to this platform and we are investing significantly into the 10E variant.”