Alliance Airlines (QQ, Brisbane International) has denied Qantas's claims that it has acquired equity in the Australian regional carrier.
In a stock market filing on Friday, February 1, Qantas said it had acquired a 19.9% stake in Alliance Airlines valued at AUD2.40 Australian dollars (USD1.75) per share or AUD60 million (USD43.65 million) in total.
It said it intended to eventually take a majority shareholding in Alliance Airlines in order to better serve the charter market by unlocking synergies.
Alliance Airlines has been a long-term capacity provider to the Qantas Group and flies regional services on behalf of Qantas itself.
However, in a subsequent response to the ASX, Alliance Airlines said its board had not received any approach from Qantas at the time of its media announcement. It did note that it was being advised by Catapult Partners (financial) and Herbert Smith Freehills (legal).
Should the transaction eventually go through, it would first require Australian Competition and Consumer Commission (ACCC) consent. There, Virgin Australia Holdings is expected to voice its concerns given that Alliance Airlines currently operates multiple routes across Australia for and on behalf of Virgin Australia (VA, Brisbane International).
"Our close commercial relationship with Alliance is important to a strong competitive aviation market, including for regional services in Queensland and charter/FIFO services supporting the mining industry," the carrier said in a press release.
"We remain committed to our partnership with Alliance who are a strong and important partner for Virgin Australia."
