The QANTAS Group has issued this statement:
The QANTAS Group has taken a 19.9 percent shareholding of Australian-based charter operator, Alliance Airlines.
Alliance Airlines is a significant service provider to the resources sector, which continues to stimulate travel demand in Western Australia and Queensland in particular. 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.
The 19.9 percent stake was acquired for an average price of $2.40 per share and for a total cost of $60 million.
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 is supportive of the ‘business as usual’ approach of Alliance Airlines management and is not seeking Board representation.