The Qantas Group has announced it has taken a 19.9 per cent shareholding of Australian-based charter operator Alliance Airlines.
Alliance Airlines is a service provider to the resources sector with particular prominence in Western Australia and Queensland. It is also a long-term provider to the Qantas Group and flies regional services on behalf of the national carrier.
The 19.9 per cent stake was acquired by Qantas for an average price of $2.40 per share and for a total cost of $60 million.
Qantas said in a statement that Alliance is a “profitable, well-managed business with high levels of operational maturity”.
The airline expects to ultimately seek regulatory approval from the ACCC to build on its current shareholding, with a longer-term view of taking a majority position in Alliance Airlines “in order to better serve the charter market by unlocking synergies”.
“In the meantime, Qantas is supportive of the ‘business as usual’ approach of Alliance Airlines management and is not seeking board representation,” the statement said.
In a statement to shareholders this morning, Alliance said its board was not warned by Qantas about its acquisition move.
Alliance will release its half-year results to the market next week.