Alliance Airlines has grown into an attractive enough target for QANTAS to drop $60m to acquire a 19.9% share of the company. QANTAS says that’s not the end of their acquisition interests in the Alliance.
OE-LFQ Austrian Airlines Fokker F70 came into the Alliance fleet April 2018
Why is Alliance Airline an attractive target for Qantas?
In 2015 when Alliance bought the entire Austrian Airlines fleet of 21 Fokker 100 and Fokker 70 aircraft … it cemented it’s position as the largest fleet of Fokker aircraft in the world. Alliance have 19 F100 aircraft and plan to increase that to 24 by the end of this financial year. With the demise of Fokker back in the 90’s that makes the stock of spares and aircraft owned by Alliance even more valuable to QANTAS given their fleet of 17 F100’s operated by QANTASLink. Spare parts for Fokker aircraft now command premium prices, especially the reliable Rolls-Royce Tay engines.
QANTAS 737 and Alliance Fokker 100 on the tarmac at Darwin
QANTAS clearly stated that Alliance is a well run business and that they are not intending to tinker. They have stated they intend to take a “business as usual” approach for the time being at least as they are not seeking board representation at this point. However they have flagged the likelihood of a submission to the ACCC in the future to purchase more of Alliance.
Alliance Airlines Fokker 70
Smithy’s FGB – VH-FGB
Is the sun to set on Alliance when and if QANTAS becomes a major stake holder in the airline? Time will tell.
