Australia's Qantas drops buyout plan of mining charter operator Alliance Aviation (updated)

Alliance Aviation Services

18/10/2023 23:22

(Updates with details and background)
       Oct 19 (Reuters) - Qantas Airways  QAN.AX  will drop its
A$611 million ($387 million) plan to buy out charter flight
operator Alliance Aviation Services  AQZ.AX , the companies said
on Thursday, months after Australia's competition regulator
blocked the deal.
        The Australian Competition and Consumer Commission
(ACCC) had in April denied authorisation for the acquisition
saying the deal was likely to push prices up and service quality
down.
    The two firms, however, believe the buyout would have beefed
up customer value without negatively affecting competition in
the resources sector, Qantas and Alliance said in a joint
statement on Thursday.
    "There is no reasonable path forward for the deal at
present," the companies said.
    The country's flag carrier will retain a near 20% stake in
Alliance and will continue its long-standing deal that sees the
smaller carrier operate up to 30 E190s aircraft for Qantas.
        
  

($1 = 1.5785 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Shailesh Kuber)
 ((Rishav.Chatterjee@thomsonreuters.com;))