The competition watchdog says it will oppose Qantas’ proposed acquisition of Alliance Airlines, an ASX-listed charter airline that mostly serves the resource sector.
The Australian Competition and Consumer Commission said on Thursday it was concerned that the $614 million (US$414 million) transaction would reduce competition for resources industry customers in Western Australia and Queensland.
“We consider Alliance to be an important competitor to Qantas, and the removal of Alliance is likely to substantially lessen competition threatening increased prices and reduced service quality for customers,” ACCC Chair Gina Cass-Gottlieb said.
“Flying workers in the resource industry to and from their worksites is an essential service for this important part of the Australian economy, so it is critical that competition in this market is protected.”…