Qantas has given up on its efforts to acquire charter operator Alliance Aviation, six months after the deal was formally opposed by the competition regulator.
Qantas said the two airlines believed the acquisition would have created customer value without lessening competition but both companies acknowledged there was no reasonable path forward for the deal at present.
The Australian Competition and Consumer Commission announced in April it would oppose the $614 million acquisition, first announced in May 2022, over fears it would reduce competition for resources industry customers in Western Australia and Queensland.
"Continuing to seek competition clearance for the transaction would require the company to apply significant resources to extensive and contested court proceedings," Alliance Aviation said in a statement.
Qantas said on Thursday it would retain its shareholding of nearly 20 per cent of Alliance and would exercise options to have it operate another four E190 aircraft for QantasLink, taking the total number of E190s that Alliance operates for Qantas Group to 26.
"Despite the outcome of the transaction, we look forward to continuing our long-standing and productive relationship with Qantas," said Alliance managing director Scott McMillan.
At 1.43pm AEDT, Qantas shares were down 2.8 per cent to $4.72, while Alliance Aviation shares were up 1.0 per cent to $3.18 on a day when most of the market was suffering heavy losses.
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