ACCC investigates Qantas stake in Alliance

0

Submissions to the ACCC investigation into Qantas' completed acquisition of a 19.9 per cent interest in Alliance Airlines close today, 4 March.

The ACCC is examining the purchase to see if it complies with the Competition and Consumer Act.

Qantas told the Australian Securities Exchange on 1 February it has taken a 19.9 per cent shareholding in charter operator, Alliance Airlines.

Alliance flies the Bundaberg-Brisbane route under a code-share agreement with Virgin Australia.

Qantas has said it wants to take a majority position in Alliance “to better serve the charter market by unlocking synergies”.

The ACCC will investigate the extent to which the shareholding may reduce competition, also “whether the partial acquisition creates a blocking stake that would prevent a more competitive alternate acquisition of the target”.

Public submissions close at 5pm on 4 March 2019. Send submissions (preferably in PDF) to [email protected] with the title “Submission re Qantas – Alliance Airlines”.

Virgin exited the Bundaberg route in July 2017 when it handed over to Alliance.