Australia’s competition watchdog is to probe Qantas’ 19.9% stake purchase in Alliance Airlines.
The Australian Competition and Consumer Commission (ACCC) said it has started an investigation.
Qantas paid A$60 million for the stake.
Alliance Airlines operates lucrative charter services mostly into the outback for Australia’s mining companies.
Qantas said it would like to ultimately take a controlling stake in the business but recognises that will involve a ‘complex regulatory process.’
That is because biggest rival Virgin Australia partners with Alliance on wet-lease and codeshare services, as well as operating a joint business charter service agreement.
Virgin has already voiced its concern over the potential of reduced competition as Qantas itself has a long established partnership with Alliance.
Qantas Group CEO Alan Joyce said the initial stake will not affect Alliance’s current business operations.
The ACCC opened a period of public consultation until March 4 for comments regarding the Qantas stake purchase.
