Qantas and Alliance Aviation Services (Alliance) have jointly announced the termination of their May 2022 agreement for Qantas to fully acquire the Australian-based charter operator.
This acquisition, which had received formal opposition from the competition regulator in April 2023, was initially anticipated to deliver enhanced customer value without undermining competition, especially in the fiercely competitive resources sector, leveraging the combined fleet of F100 aircraft. However, both companies acknowledge that, given the current circumstances, there is no viable path forward for the deal.
Qantas will persist in its commitment to serving the expanding resources sector through its existing charter operations, maintaining its considerable share of approximately 27% in the total charter market.
The Qantas Group will retain its nearly 20% shareholding in Alliance and continue the long-term agreement, which allows Alliance to operate up to 30 E190s for the Qantas Group.
Under this agreement, Qantas has opted to exercise its options for four additional aircraft, increasing the total number of E190s operated by Alliance for the Qantas Group to 26, with four additional options still in place. The new aircraft are slated to join the Qantas fleet starting in April 2024.
John Gissing, Qantas Group Executive of Associated Airlines and Services, noted, “Alliance is a vital partner for the Qantas Group and the E190s have played a pivotal role in enabling us to establish new routes across Australia. These four additional aircraft will provide increased capacity and connectivity in the domestic market.”
Alliance Managing Director Scott McMillan expressed the airline’s commitment to the enduring and productive relationship with Qantas despite the outcome of the acquisition agreement.
