The ACCC's looking very closely at Qantas' proposed takeover of Alliance Airlines.
👉Background: Qantas aka The Flying Kangaroo is Australia’s largest airline. This year has thrown up a some serious curveballs for the airline. We've seen Qantas suffering from flight delays, lost baggage and even egged houses.
👉 What happened: If that wasn't enough, the ACCC, our competition watchdog, is now looking verrry closely at Qantas' proposed takeover of Alliance Airlines for $614 million. In fact, the ACCC just issued a 'statement of concern'.
👉 What else: Alliance specialises in charter flights for fly-in-fly-out mining workers - aka FIFO flights. So now, Qantas is gonna need to work overtime to convince the ACCC to get this deal back in the air.
💡 The ACCC is all about promoting competition and fair trade to benefit consumers, businesses and the community. It wants to make sure that potential acquisitions don’t substantially reduce competition in that market.
💡The thing is, Australia doesn’t have a heap of FIFO airlines operating in Queensland and WA. In fact Alliance holds 30% of the charter market and Qantas holds 20%.
💡So this acquisition could potentially have a pretty big impact on the competition in the FIFO flight market. The final decision isn’t due until November, so it’ll be interesting to see whether this deal gets off the ground.
Sign up for Flux and join 100,000 members of the Flux family
