Qantas reached agreement to acquire Alliance Aviation

Qantas Airways Limited (ASX: QAN) has agreed to acquire Alliance Aviation Services Ltd (ASX: AQZ) (Alliance). Thus, allowing the national carrier to better provide services to the rising resources sector.

However, the arrangement is conditional on a vote from AQZ shareholders along with competition clearance. With this acquisition, Alliance would become a 100% owned portion of the Qantas Group.

Alliance has a fleet of 70 jet aircraft that seat up to 100 people each. Thus, making them appropriate to charter operations. Between these charter services and a small number of passenger routes that overlap with large mine sites, AQZ accounts for ~2% of the total domestic market.

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