Qantas x Alliance Aviation Services agreement officially terminated

Adelaide, Australia - December 23, 2015: QantasLink De Havilland Canada Dash 8 regional airliner aircraft taking off from Adelaide International Airport.

Qantas and Alliance Aviation Services Ltd (Alliance) have terminated their May 2022 agreement that would have seen the national carrier fully acquire the Australian-based charter operator.

Last year, Qantas announced that it had reached an agreement to fully acquire Alliance and its 70 E190 aircraft which can carry 100 passengers, making it perfect for charter operations.

Less than a year later, the takeover was blocked by the ACCC who, “concluded that the transaction is likely to substantially lessen competition in markets for the supply of air transport services to resource industry customers in Western Australia and Queensland.”

Qantas was reportedly puzzled by the blocking and requested a meeting to discuss the decision.

“Australia has one of the most competitive aviation industries in the world. That competitive dynamic is intensifying with new entrants and expansion of existing carriers and significant growth in the resources centre,” the airline said in a statement at the time.

Now, with the acquisition completely off the cards, Qantas will continue to serve the growing resource sector through its existing charter operations, holding a 27 per cent market share.

The group will retain a shareholding of nearly 20 per cent and continue its long-term agreement that sees Alliance operate up to 30 planes for Qantas. It has also agreed to exercise options over four additional aircraft under the same agreement.

“Alliance is an important partner for the Qantas Group and the E190s have helped us open new routes across Australia,” executive of associated airlines a0nd services, Qantas Group, John Gissing, said.

These four new aircraft will provide additional capacity and connectivity in the domestic market.”

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

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