Qantas grounds Alliance Aviation acquisition

The Flying Kangaroo has pulled the pin on its plan to purchase the Aussie-based charter operation, Janie Medbury reports.

QANTAS has announced it will not go ahead with its takeover of Alliance Aviation Services, stating “there is no path forward” after the ACCC labelled the deal as “anti-competitive”.

The agreement between the two Aussie carriers, inked back in May 2022, was formally opposed by the competition regulator in April 2023, who pointed out that Virgin Australia also has a formal Charter Alliance Agreement with Alliance Aviation.

Qantas said it will hold on to its nearly 20% stake in Alliance, which will continue to operate up to 30 E190s for the Australian flag carrier. The airline has also agreed to exercise options over four additional aircraft under the two companies’ long-term agreement, which will bring the total number of E190s operated by Alliance for the Qantas Group to 26, with four options remaining.

“Alliance is an important partner for the Qantas Group and the E190s have helped us open new routes across Australia. These four new aircraft will provide additional capacity and connectivity in the domestic market,” Qantas Group Executive of Associated Airlines and Services John Gissing said.

Alliance Managing Director Scott McMillan added, “despite the outcome of the transaction, we look forward to continuing our long-standing and productive relationship with Qantas”.

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