Qantas will no longer take over all the shares in Alliance Aviation, a company dedicated to charter flights and wet-leasing. After Australia’s competition regulator took a stance against the deal, the two companies confirmed the end of the agreement.
Despite the end of the project, Qantas confirmed that it will continue to have Alliance as a partner in addition to maintaining almost 20% of the company’s shares.
The Alliance currently supplies several Embraer E190 jets to the QantasLink regional flight network. The agreement provides that up to 30 aircraft of the model may be used in the future.
Alliance also operates several charter flights with its Fokker 100 and Fokker 70, of which it is the largest operator in the world. The aircraft are used to transport employees in a model called “Fly-in Fly-out” (round-trip flight) for companies such as mining and oil companies in Australia.
The purchase of Alliance was announced by Qantas in May 2022, shortly after the airline closed a large aircraft order.
The value proposed at the time was equivalent to US$443 million and Qantas planned to use the Fokkers on flights to Western Australia and Queensland.
It was precisely because of the loss to the two provinces that the Australian regulator decided to block the merger.