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- Queensland charter airline Alliance Aviation Services (AQZ) will continue to operate some flights covered by an agreement with Virgin Australia, despite the aviation giant entering voluntary administration this morning
- Three routes, servicing Gladstone, Bundaberg and Brisbane, fall under Alliance and Virgin’s Marketing and Distributing Agreement (MDA)
- The decision comes after Alliance scrapped two other commercial routes last week in the wake of COVID-19 travel restrictions
- Alliance also has two other commercial arrangements with Virgin
- The charter airline said its exposure to Virgin as a result of the voluntary administration was “in the order of $250,000 to $300,000”
- Alliance is up 4.96 per cent on the market this morning, trading for $2.01 per share
Queensland charter airline Alliance Aviation Services (AQZ) will continue to operate flights which fall under an agreement with Virgin Australia, despite the aviation giant entering voluntary administration this morning.
Virgin has been a long term partner of Alliance and has three commercial agreements with the airline.
“Our thoughts are with the staff of Virgin Australia at this difficult time,” the company told the market.
Virgin Australia has been forced to go into administration as the coronavirus travel restrictions cripple its cashflow.
Despite this morning’s news, Alliance says it will continue to operate flights under its marketing and distributing agreement (MDA) with Virgin, which allows Alliance to charter three routes servicing Brisbane, Gladstone and Bundaberg.
The decision comes after Alliance scrapped two other commercial routes last week in the wake of COVID-19 travel restrictions.
The charter airline said its exposure to Virgin as a result of the voluntary administration was “in the order of $250,000 to $300,000.”
In addition to the MDA, Alliance holds a wet-lease agreement and an ACCC-approved alliance agreement with Virgin.
Alliance is up 4.96 per cent on the market this morning, trading for $2.01 per share at 11:40 am AEST.
