ACCC expresses preliminary competition concerns on Qantas stake in Alliance Aviation

Australian Competition and Consumer Commission (ACCC) expressed (01-Aug-2019) "preliminary competition concerns" regarding Qantas' 19.9% stake in Alliance Aviation Services Limited, acquired in Feb-2019. Key details include:

• Alliance is considered a growing competitor of Qantas, including through its partnership with Virgin Australia. The ACCC notes Qantas' share in Alliance holds the potential to impact Alliance's future growth and its ability to be a strong competitor by impacting Alliance's "ability to grow through raising funds from investors, or to consider rival takeover approaches" as well as customers' ability to perceive Alliance as an independent rival to Qantas;
• Alliance provides alternate services to Qantas which are "highly concentrated";
• Qantas is now Alliance's largest single shareholder and the carrier did "not seek informal merger clearance from us before it acquired this stake".

The ACCC is continuing its investigation into competition effects. [more - original PR]