Qantas And Alliance Scrap Take Over Plans

Plans for Qantas to take over Alliance Aviation Services Ltd (Alliance) have been scrapped after the deal was formally opposed by the competition regulator in April 2023.

Qantas said that "both companies believe the acquisition would have created customer value without lessening competition in the highly competitive resources sector – particularly through the efficiencies created through a combined fleet of F100 aircraft. However, both companies acknowledge that there is no reasonable path forward for the deal."

However, the resource industry saw the takeover differently and most companies objected to the take over saying that it would lessen competition.

Qantas said it will continue to serve the growing resources sector through its existing charter operations where it has about 27 per cent of the total charter market.

The Group will retain its shareholding of nearly 20 per cent of Alliance and will continue its long-term agreement that sees Alliance operate up to 30 E190s for the Qantas Group.

Qantas said that it has agreed to exercise options over four additional aircraft under that agreement, which will bring the total number of E190s operated by Alliance for the Qantas Group to 26, with four options remaining. The additional aircraft are expected to join the Qantas fleet from April 2024.

Qantas Group Executive of Associated Airlines and Services John Gissing said: “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.”

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

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