QANTAS TO ACQUIRE ALLIANCE AVIATION
Qantas has reached an agreement to fully acquire Australian-based operator, Alliance Aviation Services Ltd (ASX: AQZ) (Alliance), enabling the national carrier to better serve the growing resources sector.
The agreement, which is subject to a vote from Alliance shareholders and competition clearance, would see Alliance become a wholly-owned part of the Qantas Group.
There is no change to Qantas’ arrangements with Alliance as a result of the announcement given the approvals required, which would take a minimum of several months to secure.
Alliance has a fleet of 70 jet aircraft that seat up to 100 people each, making them well suited to charter operations. Between these charter services and a small number of passenger routes that overlap with large mine sites, Alliance accounts for around 2 per cent of the total domestic market.
The national carrier is Alliance’s biggest single customer, with a long-term agreement that sees Alliance operate up to 18 newly acquired E190 jets for QantasLink. This arrangement has helped open new direct routes and increase frequency across regional Australia.
Qantas bought just under 20 per cent of Alliance in February 2019 and at the time flagged its long-term interest in acquiring 100 per cent of the airline..
