The ACCC has outlined preliminary competition concerns with
In
"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
"This merger would combine two of the top three operators of air transport services in
"Industry participants have expressed strong concerns about the impact of this proposed acquisition on air transport services, particularly to regional and remote areas,"
The proposed acquisition would remove Alliance as the only competitor to
The ACCC is considering the level of competition provided by airlines such as Virgin and Cobham's regional services arm, which was recently purchased by Rex.
The ACCC is also considering how the removal of Alliance's aircraft leasing services would impact the ability of current and new entrants to compete against
Alliance is a key supplier of wet-leased medium-sized aircraft to other airlines. Wet-leases are arrangements where an airline leases a plane, crew, and other related services from another airline or business. Wet leases are often used by airlines to expand into new routes or to provide temporary capacity increases.
"Our preliminary view is that there are already significant barriers for airlines who want to enter or expand their operations in regional and remote areas, including access to pilots, airport facilities and infrastructure, and associated regulatory approvals. The removal of Alliance as a supplier of wet-leases or the increase in price of wet-leases for
"A competitive and well-functioning aviation sector is fundamental to the Australian economy. We will closely scrutinise all mergers that may reduce competition in this sector."
The ACCC invites submissions from interested parties in response to the statement of issues by
Background
Alliance is an aviation services company with bases in
Alliance's fleet primarily comprises medium sized jet-aircraft with 60 to160 seats.
Resource customers can be serviced through a combination of closed charter, open charter and regional passenger transport services, though tend to rely on medium sized aircraft of 60 to 160 seats due to regional airstrip restrictions and aircraft economics. Release number: 112/22ACCC Infocentre:
Use this form to make a general enquiry. Media enquiries: Media Team - 1300 138 917, media@accc.gov.au
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