• Alliance Aviation sells majority of Embraer E190 spare parts inventory to AVIAN Inventory Management
• Transaction strengthens Alliance's balance sheet and enhances operational readiness
• AVIAN will establish a parts distribution center in Brisbane to support Alliance's growing E190 fleet and other Asia-Pacific operators

Alliance Aviation Services Limited (ASX: AQZ) has announced that it has entered into a binding agreement for the sale of the majority of its Embraer E190-E1 inventory to AVIAN Inventory Management (AVIAN) of Orlando, Florida for a total consideration of USD32.5 million. This transaction marks a strategic step forward in Alliance's long-term E190 operational support strategy. Under the terms of the agreement, AVIAN will acquire the current E190 inventory (excluding engines, undercarriages and auxiliary power units), and this inventory will be relocated to newly established facilities at Brisbane Airport. In a further commitment to the region, AVIAN will leverage its substantial volume of additional E190 inventory from its Orlando headquarters. This will create one of the largest Embraer E190 parts holdings globally, not only supporting Alliance's growing E190 fleet but also benefiting other operators across the Asia-Pacific region.This transaction, together with the Company's announcement earlier this week regarding the sale of engines to Beautech, are part of a broader initiative to strengthen the Company's balance sheet whilst enhancing operational readiness. Together these transactions are expected to materially reduce Alliance's inventory levels along with enabling a significant reduction in the net debt position of the company.

The current profit guidance for this financial year remains unchanged following this transaction.