Why Qantas’ Surprise Stake in Alliance Worries Virgin
Photo Credit: Alliance CEO Lee Schofield poses with a Fokker F100 Alliance aircraft. Alliance
Skift Take
Qantas surprises the market by snaring a fifth of successful charter operator Alliance Airlines. Rival Virgin Australia is particularly worried by the move. Here's why.
The Qantas Group on Friday confirmed that it had taken a 19.9 percent stake in Brisbane-based charter operator Alliance Airlines.
The purchase appears to have taken the successful charter operator by surprise, with Alliance telling the Australian Stock Exchange that “the Board has not received any approach from Qantas.”
Qantas spent $44 million (A$60 million) to purchase a fifth of Alliance, saying the shares were acquired for an average price of $2.40 per share.
Qantas expects to ultimately seek regulatory approval from
