Australian regulators oppose Qantas’ acquisition of Alliance Airlines

The Australian Competition and Consumer Commission (ACCC) has denied Qantas’ attempt to purchase Alliance Airlines, a mining charter operator.

The ACCC investigated Qantas’ proposition and concluded that the acquisition is likely to diminish competition in markets for air transport services to resource industry customers in Western Australia and Queensland, thus reducing service quality and increasing prices.

The ACCC believes that Alliance Airlines is an important competitor to Qantas, and their combination would remove effective alternatives in the markets where they compete. Qantas remains confident that the acquisition would not reduce competition in any market and intends to request a meeting with the ACCC to discuss their decision.