• $130 million impairment of Fokker F70 and F100 aircraft
• $30 million impairment and write-down of Fokker engines, spare parts and inventory
• Fokker aircraft to be progressively retired and replaced

Alliance Aviation Services Limited (ASX: AQZ) has announced a detailed review of its fleet, leading to significant impairment charges and a plan to retire and replace its Fokker aircraft. The company expects to recognize an impairment charge of approximately $130 million against the carrying value of Fokker F70 and F100 aircraft, as well as an impairment and write-down of approximately $30 million to the carrying value of Fokker engines, spare parts and inventory. These impairment and write-down charges are non-cash accounting adjustments and do not impact the company's cash position or operations. An independent specialist aircraft valuation firm has valued the company's Embraer E190 fleet at approximately $67 million (excluding realisation costs) above the aggregate carrying values recorded in the company's accounts, but no upward revaluation has been recognized in line with accounting standards. As Alliance's fleet of Fokker F70 and F100 aircraft is approaching the end of its useful economic life, the company is working through a detailed long-term fleet plan to manage the progressive retirement of these aircraft, considering lease and purchase options as well as the redeployment of aircraft.