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| Photo Alliance Airlines |
The Qantas Group has taken a 19.9 per cent shareholding of 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 profitable, well-managed business with high levels of operational maturity. It is also a long-term provider to the Qantas Group and flies regional services on behalf of the national carrier.
The 19.9 per cent stake was acquired for an average price of $2.40 per share and for a total cost of $60 million.
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 synergies.
In the meantime, Qantas is supportive of the ‘business as usual’ approach.
