Qantas (QF, Sydney Kingsford Smith) is planning to attempt a full take over of Alliance Airlines (QQ, Brisbane Int'l), in which it currently holds a 19.9% stake, once the Australian Competition and Consumer Commission (ACCC) completes its review of the current ownership structure of the regional airline, Qantas Group CEO Alan Joyce said during the IATA AGM in Seoul.
"We made our intentions clear, our medium- to long-term objective is to try a full take-over of Alliance Airlines. We think there is a lot of synergies with Network Aviation (NWK, Perth Int'l) which flies the same Fokker 100 aircraft. We think it would bring scale benefits," Joyce said.
He pointed out that Alliance Airlines had high exposure to the booming resources sectors as it operates flights to the mining outposts. Qantas Group is targeting to expand on this market.
"We could continue growing organically but it'd take a lot longer. Buying Alliance Airlines would mean the capability to grow more rapidly," Joyce said.