The Alliance Aviation Services Ltd (ASX: AQZ) share price is under pressure on Wednesday despite the release of a positive announcement.
At the time of writing, the aviation services company's shares are down 3% to $4.33.
What did Alliance announce?
Late this morning Alliance announced that a major contract with mining giant BHP Group Ltd (ASX: BHP) has been renewed.
According to the release, the company's air charter services agreement with BHP WA Iron Ore has been extended for a further two years.
While no details have been provided in respect to how much the contract is worth, it has been classed as "material" by the company.
Management believes the extension is further evidence of Alliance's reputation of outstanding customer retention. It also notes that the extension solidifies the relationship that started with the first flight for BHP WA Iron Ore all the way back in 2009.
It is also the second material contract extension in as many days. On Tuesday, Alliance revealed that it will continue to service the oil and gas reserves operations of Santos Ltd (ASX: STO) in the Cooper Basin for the next five years.
That renewal will see Alliance continue to operate services on behalf of Santos to their gas and oil operations in the Cooper Basin. Services will operate from both Adelaide and Brisbane to Santos' Moomba and Ballera airports.
Commenting on today's deal with BHP, Alliance's Chief Executive Officer, Lee Schofield, 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."
Despite dropping lower today, the Alliance share price is still up a sizeable 4.5% this week.
