The Qantas Group has taken a 19.9 per cent shareholding of Australian-based charter operator, Alliance Airlines for an average price of $2.40 per share and for a total cost of A$60 million.
Alliance Airlines is a significant service provider to the resources sector, which continues to stimulate travel demand in Western Australia and Queensland in particular.
Qantas said Alliance is a profitable, well-managed business with high levels of operational maturity. It is also a long-term provider to the Qantas Group and flies regional services on behalf of the national carrier.
Qantas expects to ultimately seek regulatory approval from the ACCC to build on its current shareholding, with a longer-term view of taking a majority position in Alliance Airlines in order to better serve the charter market by unlocking synergies.
In the meantime, Qantas said it is supportive of the “business as usual” approach of Alliance Airlines management and is not seeking board representation.