Qantas and Alliance Aviation Abandon Acquisition Plans, Opt for Expanded Aircraft Collaboration

Qantas and Alliance Aviation Abandon Acquisition Plans, Opt for Expanded Aircraft Collaboration

In a significant turn of events, Qantas and Alliance Aviation Services Ltd (Alliance) have jointly announced the termination of their acquisition agreement from May 2022. The initial plan, which sought Qantas' full acquisition of the Australian-based charter operator, faced formal opposition from the competition regulator in April 2023.

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While both aviation giants believed that the acquisition would have bolstered customer value without undermining competition in the fiercely contested resources sector, they have now acknowledged the challenges in moving forward with the deal. The combined fleet efficiencies, especially with the F100 aircraft, were touted as a major advantage of the acquisition.

Despite the setback, Qantas remains committed to serving the burgeoning resources sector through its charter operations, holding a significant 27% share of the total charter market. The airline will maintain its nearly 20% shareholding in Alliance and will persist with its long-term agreement. This agreement allows Alliance to operate up to 30 E190s for the Qantas Group.

Further strengthening their collaboration, Qantas has decided to exercise options for four additional aircraft under the existing agreement. This move will elevate the total number of E190s operated by Alliance for Qantas to 26, with an option for four more. These new additions are slated to join the Qantas fleet by April 2024.

John Gissing, Qantas Group Executive of Associated Airlines and Services, commented on the development, "Alliance remains a pivotal partner for the Qantas Group. The E190s have been instrumental in launching new routes across Australia. The inclusion of four new aircraft will further enhance our capacity and domestic connectivity."

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Echoing the sentiment, Alliance's Managing Director, Scott McMillan, stated, "Although the transaction didn't materialize as anticipated, our robust and fruitful relationship with Qantas remains intact, and we are optimistic about our continued collaboration."