{"id":138774,"date":"2023-04-20T11:55:00","date_gmt":"2023-04-20T11:55:00","guid":{"rendered":"https:\/?p=138774"},"modified":"2023-04-21T00:55:48","modified_gmt":"2023-04-21T00:55:48","slug":"australia-blocks-qantas-purchase-of-alliance-aviation-services","status":"publish","type":"post","link":"https:\/\/aviacionaldia.com\/en\/2023\/04\/australia-blocks-qantas-purchase-of-alliance-aviation-services.html","title":{"rendered":"Australia blocks Qantas’ purchase of Alliance Aviation Services"},"content":{"rendered":"\n

Australia’s competition regulator blocked Qantas Airways<\/strong> $611 million ($409 million) buyout of charter flight operator Alliance Aviation Services<\/strong>, curtailing the airline’s ability to tap demand from the resources sector.<\/p>\n\n\n\n

The Australian Competition and Consumer Commission (ACCC) said the pair competed in the so-called fly-in, fly-out domestic markets of mining-rich Queensland and Western Australia states, and the deal may push prices up and service quality down, Reuters<\/a> reported.<\/p>\n\n\n\n

The ruling is one of the first major deal rejections by the ACCC under new chair Gina Cass-Gottlieb, and presents a hurdle for Qantas to dominate a market connected to the engine of the Australian economy.<\/p>\n\n\n\n

\u2192 Qantas unveils \u2018Project Sunrise\u2019 First and Business Class cabins for A350s<\/a><\/em><\/strong><\/p>\n\n\n\n

“Regardless of today’s decision, Qantas and Alliance have a strong commercial relationship, and we expect this to remain unchanged,” said Ord Minnett analyst Phillip Chippindale in a research note.<\/p>\n\n\n\n

Chippindale said the decision appeared to contradict the ACCC assertions that top miners enjoyed strong bargaining power, and that he expected the companies to appeal in Federal Court.<\/p>\n\n\n\n

Qantas, which bought 20% of Alliance without regulator objection in 2019, said it was seeking a meeting with the ACCC. It called the ruling “at odds with the increasingly competitive nature of the segment”.<\/p>\n\n\n\n

Alliance said there was a “strong industrial logic” for it to be a part of the Qantas group and that it would closely consider its options before deciding on future steps.<\/p>\n\n\n\n

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