Regulator plans to block Qantas airline acquisition of Alliance
Australia’s competition watchdog is seeking to block Qantas’ airline acquisition of Alliance Air.
The Australian Competition and Consumer Commission said the $614 million acquisition would lesson competition in the mining and resources industry.
Alliance is a big player in the fly-in-fly-out sector transporting workers to mining locations with little other competition.
ACCC says it would especially restrict competition in Western Australia and Queensland.
“Flying workers in the resource industry is an essential service for this important part of the Australian economy, so it is critical that competition in this market is protected,” the ACCC said.
The agency received ‘considerable feedback’ that an acquisition of Alliance would affect competition and pricing.
Qantas says the mining industry has ‘strong bargaining power in their negotiations with airlines and other operators.]
Qantas requested a meeting to discuss the issues with the ACCC.
The flag carrier bought a 20% stake in Alliance in 2019 and wants to complete a full takeover.
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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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