SYDNEY- Qantas (QF) and Alliance Aviation Services Ltd (Alliance) have announced the cancellation of their agreement, initially made in May 2022, for Qantas to complete the acquisition of the Australian-based charter operator.
The competition regulator formally opposed Qantas’ acquisition of Alliance in April 2023. While both companies believed the acquisition would offer added value to customers and not reduce competition in the highly competitive resources sector, especially with the operational efficiencies achieved through a combined fleet of F100 aircraft, they now recognize that there is currently no viable path forward for the deal.
Qantas Terminate Alliance Aviation Acquisition
Qantas will continue to cater to the expanding resources sector through its existing charter operations, which already hold approximately 27 percent of the total charter market.
The Group will maintain its ownership of approximately 20 percent of Alliance and uphold its enduring agreement, allowing Alliance to operate up to 30 Embraer E190s for the Qantas Group.
Qantas has agreed to activate options for four more aircraft under this arrangement, increasing the total number of E190s operated by Alliance for the Qantas Group to 26, with four options remaining. These additional aircraft are anticipated to be integrated into the Qantas fleet starting from April 2024.
John Gissing, Qantas Group Executive of Associated Airlines and Services, stated, “Alliance is a significant partner for the Qantas Group, and the E190s have played a pivotal role in enabling us to establish new routes across Australia. These four new aircraft will contribute extra capacity and enhance connectivity within the domestic market.”
Scott McMillan, Managing Director of Alliance, added, “Despite the outcome of the transaction, we are eager to maintain our longstanding and mutually beneficial partnership with Qantas.”
Stay tuned with us. Further, follow us on social media for the latest updates.