Qantas last week increased its intake of 18 Embraer E190s from Alliance Airlines to 22 as part of a multi-year deal to ramp up its flying activity. The airline plans to deploy this aircraft between Brisbane and Huron and Wellington.
Qantas began using Alliance' Embraer jets since 2021 in domestic routes, the airline owns a 19.9% stake in Alliance Airlines. However, the Australian Competition and Consumer Commission (ACCC) also recently vetoed a proposed deal for Qantas to acquire a 100% stake in Alliance Airlines.
The airline meanwhile is still evaluating the $64 million offer, reports Financial Review.
“We think our stake is a good investment – always have, always will,” Alan Joyce, Group CEO, Qantas told the analysts recently. “We absolutely believe this arrangement and takeover of Alliance is in the best interest of customers and the aviation industry. We are looking at what our options are but we have made no decision on what to do next.”
“Over 50% of Alliance' revenue comes from business with Qantas, which now includes an expanded wet-lease deal,” Joyce added.
The Qantas-Alliance partnership had Australian Competition and Consumer Commission (ACCC’s) permission to ‘cooperate, coordinate and jointly bid’ for FIFO contracts since 2017, but the ACCC rejected a five-year extension application.
“The airlines have not demonstrated sufficient public benefit to outweigh the likely detriment from this proposed co-ordination to satisfy us that the conduct should be authorised,” the ACCC said in its decision.
“The ACCC is not satisfied that the benefits claimed under the previous authorisation were realised over the past 5 years,” the statement clarified.