THE Australian Competition and Consumer Commission (ACCC) has launched an “informal merger review” into the proposed acquisition of Alliance Airlines by Qantas (TD 05 May).
The ACCC noted that Qantas and Alliance overlap in the supply of charter services, as well as regular passenger transport.
Qantas controversially acquired 19.9% of Alliance in early 2019 (TD 01 Feb 2019) at a time when Alliance was a key supplier to rival Virgin Australia.
Having cemented an ongoing agreement for the wet lease of a now 18-strong fleet of Embraer E190 regional jets with Alliance, Qantas this month announced an agreement to acquire the remaining shares in Alliance.
The Commission is now seeking input from interested parties regarding the takeover, seeking views from stakeholders on how closely Qantas and Alliance compete, and whether there are sufficient alternative suppliers to maintain competition.
In particular the ACCC wants to evaluate the impact of the proposed deal on price, quality or service levels for charter and/or RPT services, and the impact if Alliance were to cease providing aircraft leasing or associated aviation services to other airlines after it becomes owned by QF.
Submissions can be made until 03 Jun, with a timeline indicating the ACCC’s findings will be announced in early Aug.
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Source: traveldaily