Tag Archives: Alliance Aviation Services

Alliance Aviation wins two-year contract extension from BHP

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Alliance Aviation Services has announced an extension of the air charter services agreement with BHP’s Western Australia Iron Ore division for a further two years.

This extension, Alliance says, is further evidence of Alliance’s reputation of outstanding customer retention with the extension solidifying the relationship that started with the first flight for BHP’s Western Australia Iron Ore division in 2009.

BHP WAIO is an integrated system of four processing hubs and five mines connected by more than 1,000 km of rail infrastructure and port facilities in the Pilbara region of northern Western Australia.

Lee Schofield, Alliance’s Chief Executive Officer, said: “Alliance is delighted to be continuing the provision of these charter services into the Pilbara. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension. We look forward to continuing our exceptional safety and operational record for BHP.”

Alliance extends Newmont Tanami aviation services agreement

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Alliance Aviation Services has executed a contract extension with Newmont Mining to continue chartering flights for the miner to the Granites Mine Site in the Northern Territory of Australia from bases in Perth, Darwin and Brisbane.

The three-year agreement servicing Newmont’s Tanami mine in the Northern Territory extends the current contract with the miner until 2024.

“This contract is considered by Alliance to be material as it is forecast to represent between 5% and 7% of revenue in the next 12 months,” the company said.

Alliance has been providing services to Newmont continuously for the last nine years, with Lee Schofield, Alliance’s Chief Executive Officer, saying the company is “thrilled” to be continuing this relationship.

“Air charter services to Newmont’s mine site have increased over the last nine years and it is the only site in Australia where we fly into from three different states/territories,” he said.

“This contract extension was won due to the ability of Alliance to continue to operate safe, reliable and cost-effective air charter services for Newmont.”

Newmont says Tanami is a fly-in, fly-out operation in one of Australia’s most remote locations.

Alliance secures BHP Olympic Dam connection with contract extension

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Alliance Aviation Services says it has signed a contract extension with BHP Olympic Dam for a period of three years with two 12-month extension options, permitting a full term of up to five years.

The extension will see Alliance continue to operate charter services for the BHP Olympic Dam mine site operations, in South Australia, as well as scheduled services supporting the local community of Roxby Downs.

Alliance has been servicing Olympic Dam and the Roxby Downs community since 2007 and, if exercised for the full term, by the end of this contract extension, will see continuous operations in support of Olympic Dam, by Alliance, of at least 19 years.

The contract will see the introduction of Fokker 100 jet aircraft, a 100 passenger seat aircraft, into Olympic Dam Airport to coincide with the significant upgrades currently going on at the airport, which are due for completion in February 2021.

The introduction of larger capacity aircraft will provide ongoing savings to both Alliance and BHP Olympic Dam, provide BHP Olympic Dam with greater scalability for future growth plans and provide greater comfort for all passengers, Alliance said.

Alliance’s Chief Executive Officer, Lee Schofield, said: “Alliance is delighted to be in a position to provide jet services into Roxby Downs. Passengers will enjoy a smoother, quieter and, more importantly, a quicker flight between Adelaide and Roxby Downs with a reduction of 20 minutes, or 25%.

“Since our first service into Olympic Dam in 2007, we have safely transported in excess of 1 million passengers with industry leading on time performance throughout the past 14 years. Alliance has also been an active participant in the local community with staff living in the local community and actively participating in local community events.

“We are also the largest provider of air charter services to the BHP group, servicing mines in South Australia, Western Australia and Queensland.”

In May 2019, BHP presented Alliance with an Aviation Safety Award in recognition of the safe carriage of 3.5 million BHP staff and contractors on charter and scheduled services since the company’s first charter flight for BHP in April 2002.

Alliance stays in the air with South32 Cannington, GEMCO contract

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Alliance Aviation Services says it has entered a new airline services contract with South32, as agent for each of its Cannington and GEMCO routes.

Alliance will be the sole supplier for these services, according to the company, continuing a relationship with the mine sites that began in 2006.

The extension, from 2020-2030, was won through a competitive tender process and is testament to Alliance’s safety record, on time performance and competitiveness in the marketplace, according to the ASX-listed service provider.

Lee Schofield, Alliance’s CEO, said: “Alliance is delighted to be continuing the provision of these services for both Cannington and GEMCO mine sites from Townsville, Cairns and Brisbane. This new contract will see Alliance flying a minimum of 35 sectors per week.

“For the next 10 years Alliance will also be servicing South32’s charter requirements from Darwin. This will result in a significant increase in our permanent presence in the Northern Territory, which in turn should provide significant new opportunities for Alliance, particularly in tourism.”

GEMCO, in the Northern Territory of Australia, is an open-cut mining operation, producing high-grade manganese ore that is shipped to South32’s Tasmania manganese alloy plant and around the world.

The Cannington underground silver-lead mine, in Queensland, is made up of a 3 Mt/y underground mine and processing plant (pictured).

BHP extends FIFO agreement with Alliance in Western Australia

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Alliance Aviation Services says it and BHP’s Western Australia Iron Ore division have agreed to extend their air charter services agreement for a further two years.

The extension solidifies a relationship that started with the first flight for BHP WA Iron Ore in 2009, Alliance said.

BHP’s WAIO division is an integrated system of four processing hubs and five mines connected by more than 1,000 km of rail infrastructure and port facilities in the Pilbara region of northern Western Australia. At each processing hub – Newman, Yandi, Mining Area C and Jimblebar – the ore is crushed, beneficiated (where necessary) and blended to create high-grade hematite lump and fines products. Iron ore products are then transported along the Port Hedland–Newman Rail Line to the Finucane Island and Nelson Point port facilities at Port Hedland.

Lee Schofield, Alliance’s Chief Executive Officer, said: “Alliance is delighted to be continuing the provision of these charter services into Coondewanna and Barimunya. Our commitment to safety and providing our clients with industry leading on time performance has played a significant role in being awarded this extension.”

Schofield, added: “In May this year, BHP acknowledged Alliance’s exceptional safety and operational record when BHP presented Alliance with an Aviation Safety Award in recognition of the safe carriage of 3.5 million BHP staff and contractors on charter and scheduled services throughout Australia from April 2002 to April 2019.”

Australia fly-in fly-out specialist bolsters aircraft fleet

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Alliance Aviation Services says it has entered into a binding purchase agreement with Swiss airline, Helvetic Airways AG, for the purchase of five Fokker 100 aircraft and the entirety of Helvetic’s spare engines, parts and tooling offering.

This acquisition continues to build on the strategic rationale of Alliance’s purchase of 21 Fokker aircraft from Austrian Airlines, in December 2015, the company says, enhancing the company’s ability to expand its fleet as more opportunities present themselves in Australia and the South Pacific. This is particularly so in contract aviation and wet lease services, the company said.

Alliance has several aviation contracts in place with mining companies with operations in remote parts of Australia that have a fly-in fly-out service for their employees.

The rationale for the deal, according to Alliance, includes boosting the economic life of Alliance’s fleet and reducing future capital expenditure requirements by securing low cost major components; reinforcing Alliance’s position as the largest supplier of engines and spare parts outside of Fokker; and further diversifying Alliance’s revenue streams.

Scott McMillan, Managing Director for Alliance Airlines, said: “Since the 2015 fleet purchase, we have increased our operational fleet by 11 aircraft to meet the needs of a resurgent resources sector, satisfy the demand for wet-lease services and service the growing opportunities within the tourism sector. We have also successfully on-sold several of the Austrian fleet as well establishing ongoing engine leases and we continue to sell increasing amounts of spare parts to all the major Fokker operators in the southern hemisphere.”

Alliance and BHP Nickel West extend air charter services agreement

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Alliance Aviation Services Limited has extended the air charter services to BHP Nickel West for a further five years.

This service, which has been operational since November 2006, was Alliance’s initial service in Western Australia and has become the cornerstone for the company developing a large presence in the state, the company said.

Lee Schofield, Alliance’s CEO, said: “Alliance has worked with BHP Nickel West as a partner in the provision of these services accommodating changes during the resources downturn and now we are experiencing growth of up to 17 charters per week as economic conditions continue to improve.

“As with our other resources customers throughout Australia, we are seeing growth in the number of charters as the current demand for resources is maintained and production increases.”

In July, Alliance won a three-year extension to its aviation services contract with St Barbara’s Leonora gold operations in the state.

BHP Nickel West, meanwhile, has recently signed a mining services contract extension with Thiess, part of the CIMIC Group, to continue operations at the Leinster underground mine.

St Barbara’s FIFO Alliance continues at Leonora

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Alliance Aviation Services will continue to fly workers in and out of St Barbara’s Leonora gold operations in Western Australia after the two companies agreed to extend the air charter services contract for another three years.

Alliance has been providing these fly in/fly out services to St Barbara since 2012 and will continue to arrange eight flights per week between Perth and Leonora.

Lee Schofield, Chief Executive Officer for Alliance, said the flexibility of Alliance’s fleet, “together with industry leading on time performance, greatly assisted Alliance in retaining this contract”.

This is the fifth contract Alliance has retained in a “selective tender process” over the past 12 months. Recently, Alliance received a potential five-year extension with Incitec Pivot for services to its Phosphate Hill operations in northwest Queensland.

St Barbara’s Gwalia mine is just 3 km south of Leonora in Western Australia. It produced 268,000 ounces of gold at an all-in sustaining cost of A$891 per ounce in the 12 months to the end of June. The company is currently in the process of evaluating a deep underground extension to the mine, which could see operations continue until the end of St Barbara’s 2013 financial year.