Deal subject to approval by Alliance shareholders and clearance from the ACCC.
Qantas has announced details of an agreement to fully acquire the remaining 80% of Alliance Aviation Services it does not already own.
QF is Alliance’s biggest single customer, with a long-term agreement which sees Alliance operates Embraer E190 jets under the QantasLink banner. The Alliance fleet comprises 70 aircraft seating up to 100 people each, making them well suited to charter operations.
QF purchased just under 20% of Alliance in February 2019, and now plans to acquire the remainder through a scheme of arrangement giving Alliance shareholders Qantas shares instead.
CEO Alan Joyce said the deal would enable QantasLink to better compete in the highly competitive charter segment, with details of the proposal provided to the Australian Competition and Consumer Commission (ACCC).
More details in today’s issue of Travel Daily.