Australia’s competition regulator raised concerns over Qantas’ planned acquisition of regional carrier Alliance Airlines.
The Australian Competition and Consumer Commission said it would closely scrutinise the deal as it believes it could upend the country’s ‘well-functioning’ regional aviation sector.
Alliance has a strong presence on ‘fly-in fly-out’ routes for mining and resource companies, mostly in Queensland and Western Australia.
The ACCC is concerned the tie-up would make it difficult for other carriers to enter regional and remote markets.
The deal is now on the ACCC’s watch list.
“We are concerned that this proposed acquisition is likely to substantially lessen competition for air transport services to and from regional and remote areas in Queensland and Western Australia for corporate customers,” ACCC chair Gina Cass-Gottlieb said.
“This merger would combine two of the top three operators of air transport services in Queensland and Western Australia.”
Cass-Gottlieb said complaints about the acquisition had already been lodged with the ACCC.
At least one major FIFO route would have no competitor, the ACCC said.
