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Alliance and Virgin want to work together…but Qantas owns 20% of Alliance!

November 4, 2020 Headline News 1 Comment

Unbelievably, it appears that Virgin Australia and Alliance Airlines have lodged a request with the Australian Competition and Consumer Commission, better known as ACCC, described as seeking authorisation to share information and coordinate capacity and schedules on around 40 regional and two short-haul international routes.

Sounds all very plausible and sensible really doesn’t it?

But, hang on though, one major factor makes it highly implausible and not very sensible at all really.

Why? Because Alliance Airlines is nearly 20% and compared to other shareholders individually, majority owned by Qantas!

Check out Alliance Airlines shareholders below: –

So, there you have it.  Two airlines, one of which is partly owned by both airlines’ major competitor want to join forces, apparently because they say their existing commercial arrangements do not give them the flexibility required to deal with the unique market circumstances resulting from the COVID-19 pandemic.

They added that the proposed conduct would help them efficiently provide airline services to regional communities as demand fluctuates, minimise the costs and risks of supplying those services, and assist in ensuring the long- term survival of an efficient and vigorous competitor for Qantas.

But hang on…Qantas owns nearly 20% of one of you, more than any other individual shareholder, which does not appear to have been mentioned in the application and I also wodner if Qantas has been consulted – mmm, I doubt it!

I don’t know about you readers, but that all sounds very strange to me and I wonder if the ACC will pick up on it or if they will consider it acceptable, with Virgin Australia and Alliance seeming in a bit of a hurry as they asked for urgent authorisation by 30 October, which the ACCC ignored, launching a public consultation process last week, indicating an initial decision could be made by the week of 16 November 2020.

We shall have to wait and see.

A report by John Alwyn-Jones

Currently there is "1 comment" on this Article:

  1. mark sheehan says:

    OK John, What’s your suggestion?

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