Aussie regulator opposes Qantas' acquisition of Alliance Aviation (updated)

Alliance Aviation Services

20/04/2023 24:36

(Updates with detail on regulator's review, Alliance response)
       April 20 (Reuters) - Australia's competition regulator
said on Thursday that it was opposing Qantas Airways Ltd's
 QAN.AX  proposed A$610.8 million ($409.48 million) acquisition
of Alliance Aviation Services Ltd  AQZ.AX  as it would
substantially reduce competition.
    Qantas and Alliance are key players in providing air
transport services to mining and resources companies in
Queensland and Western Australia.
        The Australian Competition and Consumer Commission
(ACCC) in its delayed review said the proposed transaction could
substantially lessen competition in the charter operating sector
in the two states.
  
        "We consider Alliance to be an important competitor to
Qantas, and the removal of Alliance is likely to substantially
lessen competition threatening increased prices and reduced
service quality for customers," ACCC Chair Gina Cass-Gottlieb
said.
  
        Alliance said in an exchange filing that 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.
  
        Separately, Qantas said it wanted more information from
the regulator on its decision, adding that it was confident the
acquisition would not impact competition in any market.
  
            
  
($1 = 1.4916 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru; Editing by Anil
D'Silva)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))