Qantas ownership stake in Alliance approved by ACCC

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jakeseven7

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Gives some certainty to both Alliance and Qantas on the ~20% QF ownership stake now staying - with the ACCC investigation now concluded with no findings. Both airlines can move forward now.

Also gives more clarity to Bain/VA2 potentially needing another arrangement rather than paying QF/Alliance for its contract flying.

Link’s prop service in Canberra was a example of this with, with VA2 picking Link over Alliance for that route which makes sense. Does this mean more cooperation with Link moving forward?

I wonder if this might open up some potential for future Rex/VA2 conversations as well.

As many AFF members have suggested this partnership ‘seems’ logical in many ways with VA2 unable to penetrate many regional routes competitively in their current model, and Rexy dropping tens of millions trying to get their jet ops working on old Virgin planes… match made in heaven to take on QF/Alliance?


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ACCC ends Qantas, Alliance probe without action​


A three-year-long competition probe into Qantas’ 19.9 per cent stake in wet-lease operator Alliance Aviation has finally ended without any action against either company.

Alliance told shareholders on Tuesday that the Australian Competition and Consumer Commission had advised it that the investigation, which started in February 2019, had concluded with no action.

The decision will come as a relief to both Alliance and Qantas as the long investigation had frustrated both parties, potentially delaying future projects.

Alliance operates mainly as a fly-in, fly-out operator and wet-leasing client for Qantas.


 
Link’s prop service in Canberra was a example of this with, with VA2 picking Link over Alliance for that route which makes sense. Does this mean more cooperation with Link moving forward?
Makes some sense but I will be avoiding the Link routes if possible
 
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Gives some certainty to both Alliance and Qantas on the ~20% QF ownership stake now staying - with the ACCC investigation now concluded with no findings. Both airlines can move forward now.

Also gives more clarity to Bain/VA2 potentially needing another arrangement rather than paying QF/Alliance for its contract flying.

Link’s prop service in Canberra was a example of this with, with VA2 picking Link over Alliance for that route which makes sense. Does this mean more cooperation with Link moving forward?

I wonder if this might open up some potential for future Rex/VA2 conversations as well.

As many AFF members have suggested this partnership ‘seems’ logical in many ways with VA2 unable to penetrate many regional routes competitively in their current model, and Rexy dropping tens of millions trying to get their jet ops working on old Virgin planes… match made in heaven to take on QF/Alliance?


——

ACCC ends Qantas, Alliance probe without action​


A three-year-long competition probe into Qantas’ 19.9 per cent stake in wet-lease operator Alliance Aviation has finally ended without any action against either company.

Alliance told shareholders on Tuesday that the Australian Competition and Consumer Commission had advised it that the investigation, which started in February 2019, had concluded with no action.

The decision will come as a relief to both Alliance and Qantas as the long investigation had frustrated both parties, potentially delaying future projects.

Alliance operates mainly as a fly-in, fly-out operator and wet-leasing client for Qantas.



I'm sure that if Alliance had the right aircraft for SYD-CBR route they would have been considered, but as Alliance retired their Fokker F50s they only had F70s, F100s and E190s none of which offered a compelling economic operating cost/turnaround time to compete with Qantaslink Dash 8s on this short sector.

The logical partner for Virgin for SYD-CBR was actually Rex with their large Saab 340 fleet and base in SYD, but when it comes to co-operation between Rex and Virgin it seems to be logic-free and economic rationalism free zone. They seem determined to duplicate their efforts, put each other out of business, and hand a market monopoly to Qantstar.
 
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The logical partner for Virgin for SYD-CBR was actually Rex with their large Saab 340 fleet and base in SYD, but it comes to co-operation between Rex and Virgin it seems to be a logic free and economic rationalism free zone. They seem determined to duplicate their efforts, and put each other out of business and hand a market monopoly to Qantstar.

Agreed - It does seem a pretty self destructive path, just really continues to weaken them both - Rex forces VA2’s jet yields down by targeting them heavily and VA2 uses a random tiny plane operator on the CBR route when as you says logically on paper Rex has the better solution.

Makes some sense but I will be avoiding the Link routes if possible

Too small?
 
Agreed - It does seem a pretty self destructive path, just really continues to weaken them both - Rex forces VA2’s jet yields down by targeting them heavily and VA2 uses a random tiny plane operator on the CBR route when as you says logically on paper Rex has the better solution.



Too small?
No J for starters. I’ve got no problem in Y when I go to regional centres when there are no other options but I ain’t flying between capital cities in Y
 
Link’s prop service in Canberra was a example of this with, with VA2 picking Link over Alliance for that route which makes sense. Does this mean more cooperation with Link moving forward?

I wonder if this might open up some potential for future Rex/VA2 conversations as well.
VA also has a interline/FF agreement with FlyPelican. I would not be surprise if this is expanded in regional NSW to selected destinations under a expanded/proper codeshare agreement.
 
The logical partner for Virgin for SYD-CBR was actually Rex with their large Saab 340 fleet and base in SYD, but when it comes to co-operation between Rex and Virgin it seems to be logic-free and economic rationalism free zone. They seem determined to duplicate their efforts, put each other out of business, and hand a market monopoly to Qantstar.
As long as the 'PE' egos are behind the control of both airline groups, it's likely they'll continue going down this path.

A better bet is a REX/Bonza merger, which to some extent would benefit REX/PAG/Singapore with replacing the 'old' VA/VB 738s. The question is will be a 'merger of equals' (tm UA/CO), or will one of the PE companies try gain majority control of the combined identity.
 
I'm sure that if Alliance had the right aircraft for SYD-CBR route they would have been considered, but as Alliance retired their Fokker F50s they only had F70s, F100s and E190s none of which offered a compelling economic operating cost/turnaround time to compete with Qantaslink Dash 8s on this short sector.

The logical partner for Virgin for SYD-CBR was actually Rex with their large Saab 340 fleet and base in SYD, but when it comes to co-operation between Rex and Virgin it seems to be logic-free and economic rationalism free zone. They seem determined to duplicate their efforts, put each other out of business, and hand a market monopoly to Qantstar.

In light of the recent news on both DL (MOU Interline with ZL and upcoming (delayed) FF program) and UA (awaiting final ACCC blanket codeshare/marketing approvals with VA), we can finally say goodbye to any form of ZL/VA co-operation for the foreseeable future.

This will leave Bonza and their PE owner out in a much more difficult situation as PAG/DL and Bain/UA starts to 'battle' each other on the Oz TransPacific market towards the end of 2022 and into 2023.
 
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No J for starters. I’ve got no problem in Y when I go to regional centres when there are no other options but I ain’t flying between capital cities in Y

I think it was you who put me off flying LINK due to needing earplugs to travel safely. No thanks.
 
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