Qantas Buys 19.9% Stake in Alliance Airlines

The Qantas Group has taken a new shareholding position in an industry-leading carrier. Qantas has announced it will buy a 19.9% stake in Alliance Airlines, costing AU $60 million. This indicates an average share price of AU$2.40 per share. Alliance Airlines is a major service provider to the Australian resources sector. Consequently, Alliance creates continued travel demand to Western Australia and Queensland. Alliance is a profitable firm with great leadership and organization and has long been a regional service provider for Qantas in Australia. Furthermore, Qantas intends to take a larger shareholding in the future, if they receive regulatory approval from the ACCC. While this larger shareholding would allow them to better serve the Australian charter market, they may face opposition to the move down the road.