ACCC opposes Qantas acquisition of Alliance Aviation Services

The Australian Competition and Consumer Commission (ACCC) has announced its opposition to Qantas Airways’ proposed acquisition of Alliance Aviation Services, citing concerns that the merger would substantially lessen competition in the markets for air transport services to resource industry customers in Western Australia and Queensland. Qantas Airways and Alliance Aviation Services both offer air transport services to mining and resource companies for "fly-in fly-out" workers.

The ACCC's investigation found that the elimination of Alliance as a significant competitor to Qantas could lead to higher prices and lower service quality for customers. Many customers, particularly in the resource industry, value Alliance’s large fleet capacity, customer-centric approach, and high-quality service offerings, including having the highest on-time-performance in the industry. The ACCC found it unlikely that a new or existing airline could expand quickly to a scale that would address the loss of competition resulting from the proposed acquisition, and so the merger was opposed.

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