ACCC clears Qantas' stake in alliance after 3-year wait

The ACCC has finally confirmed it will not take any action against Qantas for buying a 19.9% stake in Alliance in February 2019. The Flying Kangaroo paid A$60m but its stock is now worth more than $90m after the smaller airline became one of the industry’s pandemic success stories. Alliance managing director Scott McMillan revealed the competition watchdog confirmed the decision in a letter that stated action will not be taken “at this point in time”. QantasLink is currently wet-leasing 11 of Alliance’s Embraers, with the possibility that seven more could be put into service in the next two years. The announcement marks a significant change in tone from the ACCC after it initially said it was concerned the shareholding could “have the effect of substantially lessening competition in markets for the supply of fly-in fly-out (FIFO) charter airline services, and regular passenger transport (RPT) services on routes serviced by Alliance Airlines aircraft”. “Alliance Airlines is often Qantas’ only or closest competitor (or an integral input to Virgin where Virgin is Qantas’ only or closest competitor) for these services,” it previously argued. However, last year, Alliance itself signed a separate deal with rival Virgin to collaborate on 41 regional routes until 31 March 2023. The ACCC cleared that agreement, too, despite fierce opposition from Rex.<br/>