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QF buys 19.9% of Alliance

Old 1st Feb 2019, 01:04
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QF buys 19.9% of Alliance

Well that was unexpected. It seems to have caught Alliance by surprise as they have since announced to the market that they were unaware of the transaction.
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Old 1st Feb 2019, 01:39
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https://www.qantasnewsroom.com.au/me...ance-airlines/

Qantas 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.
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Old 1st Feb 2019, 01:45
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Had been mentioned at Watermark around 6 months ago as Alliance crew were operating on behalf of Qantas on behalf of Network on behalf of Qantaslink ... came to fruition ...

Is this the Network of Queensland?
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Old 1st Feb 2019, 01:51
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Not just Queensland, SA, NT, and a very significant WA market share too!

VA will be scrambling for a response. A lot of their Qld flying is done by QQ!
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Old 1st Feb 2019, 03:00
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This could be a good thing for VA, if they get someone who knows the they are doing they could easily expand VARA to replace them.
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Old 1st Feb 2019, 03:07
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Great....another ‘rainy day’ purchase, ala Impulse... just great.
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Old 1st Feb 2019, 03:12
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Wasn’t that the whole point of buying Network? The wording from Qantas sounds very familiar.....
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Old 1st Feb 2019, 03:20
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Qantas expects to ultimately seek regulatory approval from the ACCC to build on its current shareholding,
If I recall correctly Virgin tried to buy Alliance but they were thwarted by the ACCC, anti competitive and all. So if QF owns Network already how on earth could the ACCC approve them owning another competitor in the market? It would be like Coles buying IGA. This would clearly decrease competition in the market.

Oh wait...
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Old 1st Feb 2019, 03:26
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This could be extremely good news for VA pilots, accelerated phase out of the notoriously unreliable F100 and the return of a 100 seat east coast jet to take over the routes presently operated by QQ.

Assuming of course the ACCC approve a takeover, a big ask given the market share Qantas group currently controls....
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Old 1st Feb 2019, 04:24
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Originally Posted by chickoroll View Post
This could be a good thing for VA, if they get someone who knows the they are doing they could easily expand VARA to replace them.
Huh? That made no sense.
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Old 1st Feb 2019, 06:11
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This is there to leverage the network guys, who leverage the Jetstar guys who leverage the qantas guys.

It also looks like they are building up a national fifo operation. They will end up with pretty much all the fokkers in the world. Netlance will also be big enough to take on 320s from JQ as they reach the end of their high utilisation life.

It could be a formidable operation if merged with sunstate, eastern and eventually the cobham airline division.

It will also pincer VA who use alliance as a stop gap to cover network shortages.

Interesting times.
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Old 1st Feb 2019, 06:35
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Originally Posted by Icarus2001 View Post
If I recall correctly Virgin tried to buy Alliance but they were thwarted by the ACCC, anti competitive and all. So if QF owns Network already how on earth could the ACCC approve them owning another competitor in the market? It would be like Coles buying IGA. This would clearly decrease competition in the market.

Oh wait...
.....oh wait...indeed, it's QF, the SkyGods have plenty of friends in high places.,
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Old 1st Feb 2019, 06:38
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What makes QF believe they will get ACCC approval? If it was anti competitive for VA to own it I can hardly see how QF owning it isn't.

What do QF know that everybody else doesn't?
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Old 1st Feb 2019, 06:45
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Originally Posted by neville_nobody View Post
What makes QF believe they will get ACCC approval? If it was anti competitive for VA to own it I can hardly see how QF owning it isn't.

What do QF know that everybody else doesn't?
Ask Olivia, she is pretty handy dispensing freebies...

Qantas and Virgin Australia are spending hundreds of thousands of dollars a year feting watchdogs, public servants, and politicians and their families with complimentary memberships to private airline lounges, limousines and business and first-class flight upgrades. More than two thirds of parliamentarians accept the travel freebies, as do senior officials from the Australian Securities and Investments Commission, Australian Competition and Consumer Commission, Department of Infrastructure and the Treasury.
Soft corruption has wood panelling!

https://www.ausbt.com.au/what-it-s-r...irman-s-lounge
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Old 1st Feb 2019, 06:52
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VA never tried to own it - they wanted to enter into an anti competitive trade alliance and were knocked back. QF have said they will not go on the board , or attempt to change the model . They are at this stage no different from HSBC owing the shares . So they will not have an issue with this level of ownership . The trick will be taking control , but in the meantime VA will have to withstand the embarrassment of Code share aircraft 20% owned by QF ! This is like Game of Thrones . Strategy with the goal of cutting off VA's supply chain , and taking control of the FIFO market .
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Old 1st Feb 2019, 07:12
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My recollection (which is hazy) was that the accc's decision on VA/QQ rested on silentme fairly detailed analysis on particular markets and routes.

At a quick glance, I struggle to see how QF/QQ would get approved. But, perhaps QF thinks/has advice that it wouldn't fall foul on a market-by-market analysis, or that it could make enough adjustments to assuage any concerns.

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Old 1st Feb 2019, 07:43
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QF buys its way into the second larges shareholder

So, just to be clear,

QF didn't "buy" Alliance Airlines.

They did however buy 19.9% of Alliance. Looking at the financial report from 8/9/2018, https://www.asx.com.au/asxpdf/201808...0hhp9dh3gp.pdf
that makes them the second largest share holder behind HSBC at 22%.

Of course, since that report there has been some buying and selling of shares, Who sold that 19.9% is the question?

But everyone needs to cool their Jets a little.

I'm sure its a strategic move to squeeze VA some more and sure up some control over the FIFO contracts and of course, QF's favourite IR game of playing pilot/engineering groups against each other.

Last edited by Roj approved; 1st Feb 2019 at 07:55. Reason: didn't want to get in trouble with the grammar police
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Old 1st Feb 2019, 07:43
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Old 1st Feb 2019, 08:23
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But everyone needs to cool their Jets a little. I'm sure its a strategic move to squeeze VA some more and sure up some control over the FIFO contracts and of course, QF's favourite IR game of playing pilot/engineering groups against each other.
No it's the first move in a takeover. If it comes off VA will be in a world of hurt on many levels.

Qantas 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.
Soft corruption has wood panelling!
Maybe so but I can't see QF buying their way out of this one it would be just a little to obvious given the previous ruling
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Old 1st Feb 2019, 09:09
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Originally Posted by Roj approved View Post
So, just to be clear,

QF didn't "buy" Alliance Airlines.

They did however buy 19.9% of Alliance. Looking at the financial report from 8/9/2018, https://www.asx.com.au/asxpdf/201808...0hhp9dh3gp.pdf
that makes them the second largest share holder behind HSBC at 22%.
Wonder what sort of connections could be found between HSBC , Alan Joyce Pty Ltd , and the airframe Leases of all these burgeoning Qantas Subsidiaries, that happen to lie outside the Qantas Sale Act provisions !

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