Qantas buys Alliance
Just what we need. Less competition.
This cannot be good for Australian aviation.
Let’s hope the accc stop this.
Yet another pilot group to play off against each other, further driving down wages…….
This cannot be good for Australian aviation.
Let’s hope the accc stop this.
Yet another pilot group to play off against each other, further driving down wages…….
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Originally Posted by pinkpanther1
Qantas this morning has advised the ASX of the acquisition of 100% of Alliance. Subject to ACCC approval. Didn't see that coming so soon.
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Originally Posted by Capt Fathom
How about a new fleet of Airbus 220 coming their way.
Qantas this morning has advised the ASX of the acquisition of 100% of Alliance.
Two big hurdles to jump. One is shareholder agreement and the trickier ACCC approval.
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Qantas has announced it intends to purchase Alliance Aviation, three years after acquiring a 19.9 per cent stake in the carrier.
The airline said on Thursday that the move, which would see Alliance become a wholly-owned subsidiary of Qantas, would allow it to “better serve the growing resources sector”.
It comes just one month after the ACCC finally cleared Qantas’ stake in the airline, after a three year investigation into its impact on competition.
Alliance currently holds wet-lease agreements with both Qantas and Virgin, for the use of its fleet for regional, charter, and fly-in fly-out operations.
It also comes after Qantas exercised more options under its wet-lease with Alliance in March, for the use of 14 QantasLink-branded Embraer E190s, crewed by Alliance personnel. The agreement offers Qantas options to use up to 18 Alliance E190s under the QantasLink brand.Qantas said its existing agreement with Alliance will continue to operate as normal until any deal is finalised.
Qantas said the remaining 80 per cent share of Alliance would be acquired through a scheme of arrangement, where Alliance shareholders receive Qantas shares worth $4.75 for each share held in Alliance.
This represents a 32 per cent premium to Alliance’s volume weighted average price over the last three months, according to the airline Alliance’s directors have unanimously recommended the scheme, with Chairman Steve Padgett stating the transaction “represents a compelling opportunity for our shareholder to exit the Alliance business following a period of significant industry upheaval, and to realise a strong return on Alliance’s fleet assets”.
Qantas has informed the ACCC of its intentions, and the final deal will require formal approval from the competition watchdog. The deal is also subject to approval by Alliance shareholders.
Qantas purchased a 19.9 per cent stake in Alliance in 2019, and has long-flagged its desire to acquire 100 per cent of carrier.
Qantas Group CEO Alan Joyce said acquiring Alliance under the QantasLink brand allows the airline to be more competitive in the fierce regional aviation market.
“Alliance’s fleet of Fokker aircraft are perfect for efficiently serving resources customers in WA and Queensland,” Joyce said.
“They also have a big inventory of spare parts that would significantly extend the practical life of a combined fleet of around almost 70 Fokkers.
“Keeping these aircraft operating reliably for longer than either carrier could achieve themselves will help keep costs down, which is ultimately good news for charter customers,” he said.
“The resources sector continues to grow and any new tender for airline services will be very competitive. It makes sense for us to combine with Alliance to improve the services we can offer, which is a positive for both airlines as well as the travelling public.”
The airline said on Thursday that the move, which would see Alliance become a wholly-owned subsidiary of Qantas, would allow it to “better serve the growing resources sector”.
It comes just one month after the ACCC finally cleared Qantas’ stake in the airline, after a three year investigation into its impact on competition.
Alliance currently holds wet-lease agreements with both Qantas and Virgin, for the use of its fleet for regional, charter, and fly-in fly-out operations.
It also comes after Qantas exercised more options under its wet-lease with Alliance in March, for the use of 14 QantasLink-branded Embraer E190s, crewed by Alliance personnel. The agreement offers Qantas options to use up to 18 Alliance E190s under the QantasLink brand.Qantas said its existing agreement with Alliance will continue to operate as normal until any deal is finalised.
Qantas said the remaining 80 per cent share of Alliance would be acquired through a scheme of arrangement, where Alliance shareholders receive Qantas shares worth $4.75 for each share held in Alliance.
This represents a 32 per cent premium to Alliance’s volume weighted average price over the last three months, according to the airline Alliance’s directors have unanimously recommended the scheme, with Chairman Steve Padgett stating the transaction “represents a compelling opportunity for our shareholder to exit the Alliance business following a period of significant industry upheaval, and to realise a strong return on Alliance’s fleet assets”.
Qantas has informed the ACCC of its intentions, and the final deal will require formal approval from the competition watchdog. The deal is also subject to approval by Alliance shareholders.
Qantas purchased a 19.9 per cent stake in Alliance in 2019, and has long-flagged its desire to acquire 100 per cent of carrier.
Qantas Group CEO Alan Joyce said acquiring Alliance under the QantasLink brand allows the airline to be more competitive in the fierce regional aviation market.
“Alliance’s fleet of Fokker aircraft are perfect for efficiently serving resources customers in WA and Queensland,” Joyce said.
“They also have a big inventory of spare parts that would significantly extend the practical life of a combined fleet of around almost 70 Fokkers.
“Keeping these aircraft operating reliably for longer than either carrier could achieve themselves will help keep costs down, which is ultimately good news for charter customers,” he said.
“The resources sector continues to grow and any new tender for airline services will be very competitive. It makes sense for us to combine with Alliance to improve the services we can offer, which is a positive for both airlines as well as the travelling public.”
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Originally Posted by AussieAviator
Bring it on, I say!
Originally Posted by Lapon
How likley is this to get past the ACCC anytime soon, if at all?
Didn't it take about 3 years to give the nod to just a 20% holding in AQZ?
Didn't it take about 3 years to give the nod to just a 20% holding in AQZ?
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Originally Posted by AussieAviator
I did!! As soon as the ACCC dropped the opposition to Qantas buying us, I knew that the Irishman would make a offer ASAP. From our flight planning procedures to normal operating procedures, Qantas has been creeping in, and I guess that we will have to wear the QF uniform, just like most of the FA's already do. Bring it on, I say!
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Wonder what this means for Network?
It would seem that with Alliance being so much more involved on a national scale with FIFO work, including a huge presence out west, that keeping Network and it’s old F100s and hand me down Buses is pointless?
It would seem that with Alliance being so much more involved on a national scale with FIFO work, including a huge presence out west, that keeping Network and it’s old F100s and hand me down Buses is pointless?
Originally Posted by PoppaJo
Depends how convincing Virgin’s argument is. They put forward a strong case against the QF/Japan tie up which got rejected (and rightly so), with the regulator citing many reasons VA raised.
