Australian competition watchdog voices concern over Qantas’ Alliance Airlines stake
Australia’s anti-trust watchdog is again flagging up competition concerns over Qantas.
It has voiced initial concerns over the carrier’s 19.9% stake in Alliance Airlines.
The ACCC issued a statement setting out its preliminary concerns over the transaction and what effects it believe it will have on customer choice.
"Alliance Airlines is a close, important and growing competitor to Qantas, including through its partnership with Virgin. It provides consumers and companies with a crucial alternative to Qantas in markets that are already highly concentrated," ACCC chair Rod Sims said.
"Qantas did not seek informal merger clearance from us before it acquired this stake in Alliance, which made Qantas Alliance’s biggest single shareholder."
When Qantas announced plans for a stake purchase, it hinted it could lead to a full takeover in the future.
It has now backed down on that, insisting the ‘current stake is not contingent on reaching a majority position.’
The ACCC added: "We consider this shareholding has the potential to impact Alliance’s future growth and its ability to be a strong competitor. It may impact Alliance’s ability to grow through raising funds from investors, or to consider rival takeover approaches. It may also impact whether Alliance’s customers perceive it to be an independent rival to Qantas."
"In our view, any move by one company to acquire and build on a significant stake in a close competitor is likely to raise competition issues," Sims said.
Virgin Australia has welcomed a probe by the competition regulator.
The ACCC is seeking feedback from interested stakeholders before potentially launching an official anti-trust investigation.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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