Australia’s Alliance Aviation will acquire transportation and logistics giant Toll Group’s MRO unit, in what it calls a deal of “great strategic value”.

Alliance on 13 November signed a share sale and purchase agreement to purchase Brisbane-based Toll Aviation Engineering. The carrier did not disclose the financial value of the transaction, but states that it will finalise details of the sale by the end of the month.

640 Fokker 70 Alliance c AirTeamImages 255183

Source: AirTeamImages

Alliance Aviation operates a fleet of 12 Fokker 70 aircraft.

The move to take over Toll Aviation Engineering is also in line with the carrier’s recent acquisition of 14 Embraer E190s, the first of which was delivered in September.

Alliance says it will have a “material expansion” in engineering and maintenance facilities following the acquisition. Toll’s existing hangar in Brisbane Airport is “materially larger” than Alliance’s existing facility, and is “fit for purpose” for E190 MRO work.

Once the sale is complete, Toll Aviation Engineering will have its name changed to United Aviation Maintenance, operating as a “distinct subsidiary” of Alliance Aviation.

The new company will also retain its third-party MRO services, Alliance adds.

“The purchase consideration is not a financially material transaction however is of great strategic value to Alliance,” it states, adding that it will be earnings neutral for the coming financial year.

Alliance Aviation managing director Scott McMillan says the transaction will “allow for a much smoother integration” of the E-Jets in the short term, as well as “for a more efficient and financially sustainable line maintenance programme in future years”.

Cirium fleets data indicates Alliance Aviation has a fleet of 43 in-service aircraft, including 25 Fokker 100s and 12 Fokker 70s. It also has two E190s in service. 

Toll Aviation Engineering is the MRO unit of Australia’s Toll Group, with bases in Brisbane and Adelaide. It also provided MRO services to Virgin Australia’s regional unit in Sydney and Canberra.