Qantas Terminates A$614 Mln Alliance Aviation Takeover
(RTTNews) - Qantas has terminated its planned A$614 million takeover of Alliance Aviation Services Ltd following opposition from Australia's competition regulator.
Qantas said it will continue to serve the growing resources sector through its existing charter operations; it currently has around 27 percent of the total charter market.
Qantas will retain its shareholding of nearly 20 percent of Alliance Aviation and will continue its long-term agreement that sees Alliance operate up to 30 E190s for the Qantas Group.
Qantas noted that it has agreed to exercise options over four additional aircraft under that agreement, which will bring the total number of E190s operated by Alliance for the Qantas Group to 26, with four options remaining. The additional aircraft are expected to join the Qantas fleet from April 2024.
In May 2022, Qantas reached an agreement to fully acquire Australian-based operator, Alliance Aviation Services Ltd (AQZ.AX).
Qantas bought just under 20 per cent of Alliance in February 2019 and at the time flagged its long-term interest in acquiring 100 per cent of the airline.
Under the May 2022 agreement, the remaining 80 percent would be acquired through a scheme of arrangement where Alliance shareholders receive Qantas shares worth A$4.75 for each Alliance share they hold. Qantas would issue new shares valued at about A$614 million in a transaction.
