Qantas abandons its plan to acquire Alliance Aviation Services
Qantas Airways has decided to abandon its plan to acquire the charter flight operator Alliance Aviation Services. This decision comes after several months of uncertainty. In May 2022, both companies signed a deal valued at 611 million Australian dollars (387 million US dollars). However, Australia’s competition regulator blocked this operation, leaving Qantas at a crossroads.
The Australian Competition and Consumer Commission (ACCC) denied the acquisition authorization in April. The ACCC argued that the agreement would likely raise prices and reduce service quality in the aviation sector. Despite airlines’ opposition, claiming that the acquisition would improve service without negatively impacting competition, the joint statement from the companies acknowledged that «there is no future for the agreement at this time.»
However, Qantas has confirmed its commitment to its charter operations in the resources sector, where it currently holds a 27 percent market share. It’s important to note that the airline is currently facing an image crisis, in part due to the perception that it acts in an anti-competitive manner.
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Additionally, the group will maintain its nearly 20 percent stake in Alliance Aviation Services. The agreement that allows Alliance Aviation to operate up to 30 Embraer E190 aircraft on behalf of Qantas will also remain in effect. John Gissing, Qantas’ Executive in Charge of Airlines and Associated Services, stated, «Alliance is a crucial partner for us, and its E190s have played a significant role in opening new routes across Australia.» Scott McMillan, CEO of Alliance Aviation Services, added, «We look forward to continuing our long and productive relationship with Qantas.»
Qantas is not the only airline seeking to expand its charter services. In July 2022, Regional Express Holdings, known as Rex, acquired the charter operator National Jet Express.
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