Qantas and Alliance Aviation have terminated their May 2022 agreement for Qantas to fully acquire the Australian charter airline. Qantas will retain nearly 20 percent of Alliance and continue their agreement with Alliance operating up to 30 E190s for the Group.
On Thursday (October 19, 2021), Qantas announced the termination of their May 2022 agreement to fully acquire the Australia-based charter operator Alliance Aviation Serviced Ltd. Due to the formal opposition of the competition regulator in April 2023, the parties have determined that there is no reasonable path forward for the deal at present. Qantas will continue to serve the growing resources sector through their current charter operations, which currently has around 27 percent of the market share.
The Qantas Group will retain nearly 20 percent equity in Alliance and will continue their long-term agreement with the charter airline to operate up to 30 Embraer E190s on behalf of Qantas. Under the agreement, Qantas has also agreed to exercise options over four additional aircraft, which will bring the current number of E190s operated by Alliance for the Qantas Group to 26 with four options remaining.
In Thursday’s announcement, Qantas Group’s Executive of Associated Airlines and Services, John Gissing, said,
“Alliance is an important partner for the Qantas Group and the E190s have helped us open new routes across Australia. These four new aircraft will provide additional capacity and connectivity in the domestic market.”
Also commenting on the deal termination, Alliance’s Managing Director, Scott McMillan, added,
“Despite the outcome of the transaction, we look forward to continuing our long-standing and productive relationship with Qantas.”
The additional four Embraer E190s are expected to Join the Qantas fleet from April 2024.
Source: Qantas