Alliance Airlines is a publicly listed company trading on the Australian Securities Exchange (ASX: AQZ). While it operates as an independent entity, Qantas Airways Limited holds a significant minority stake in the airline.
The Proposed Qantas Takeover
In May 2022, Alliance announced it had agreed terms to be taken over by Qantas. This proposed acquisition aimed to integrate Alliance's extensive fleet of Fokker aircraft and its charter operations, particularly in the resources sector, into the Qantas Group. The deal, valued at approximately A$614 million, was subject to regulatory approval from the Australian Competition and Consumer Commission (ACCC).
Acquisition Blocked by Regulator
However, the full takeover did not proceed as planned. In April 2023, the ACCC announced its decision to oppose Qantas's proposed acquisition of Alliance Airlines. The competition watchdog concluded that the acquisition would substantially lessen competition in the aviation services market, particularly for:
- Fly-in/fly-out (FIFO) services: Essential for the resources sector in Australia.
- Wet-lease services: Where an airline provides aircraft, crew, maintenance, and insurance to another airline.
The ACCC's primary concern was that a combined Qantas-Alliance entity would dominate the market, potentially leading to higher prices and reduced service quality for customers.
Current Ownership Structure
As a result of the ACCC's decision, Alliance Airlines remains an independent, publicly listed company. While Qantas previously held a substantial minority shareholding of approximately 19.9% in Alliance, the full acquisition that would have made Alliance a wholly-owned subsidiary of Qantas was prevented. Therefore, Alliance Airlines continues to operate under its own management and board, with its shares available for trade on the ASX.
Key Facts on Alliance Ownership & Acquisition
| Aspect | Details |
|---|---|
| Current Status | Publicly listed company (ASX: AQZ) |
| Major Shareholder | Qantas Airways Limited holds a significant minority stake (approx. 19.9%) |
| Proposed Takeover | In May 2022, Alliance agreed to be taken over by Qantas. |
| Acquisition Value | Approximately A$614 million (at the time of the agreement) |
| Regulatory Outcome | The Australian Competition and Consumer Commission (ACCC) opposed and blocked the full takeover in April 2023. |
| Reason for Block | Concerns over reduced competition in FIFO and wet-lease aviation services. |
About Alliance Airlines
Alliance Airlines specializes in contract and charter services, particularly for the mining and resources sectors, and also operates scheduled passenger services for third parties. Its business model focuses on providing reliable air transport solutions using a fleet predominantly comprised of Fokker aircraft.
