Qantas scraps Alliance Aviation acquisition plan

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Qantas has scrapped plans to acquire Alliance Aviation Services, which services the mining industry with FIFO workers.

The planned acquisition costed at $611 million was opposed by the Australian Competition and Consumer Commission (ACCC) leaving the two carriers agreeing there was no “reasonable path forward for the deal”.

“Both companies believe the acquisition would have created customer value without lessening competition in the highly competitive resources sector – particularly through the efficiencies created through a combined fleet of F100 aircraft,” the two airlines said in a joint statement.

“However, both companies acknowledge that there is no reasonable path forward for the deal at present.”

The ACCC knocked back the acquisition saying it was “likely to substantially lessen competition for air transport services to and from regional and remote areas in Queensland and Western Australia for corporate customers”.