The Qantas Group has acquired a 19.9% stake in
the 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 long-term
provider to the Qantas Group and flies regional services on behalf
of the national carrier.
The 19.9% stake was acquired for an
average price of $2.40 per share and for a total cost of $60
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
In the meantime, Qantas said it is supportive of the
Ďbusiness as usualí approach of Alliance Airlines management and
is not seeking board representation.