Qantas is trying to take over Alliance Airlines, a competitor in the lucrative FIFO market – the flying in and out of mine workers in remote locations. The ACCC is not so sure it’s a good idea, so what’s the scam?
The scam is that Qantas is putting shareholders and executives ahead of employees and customers yet again. Flush with billions in public money, Qantas chief Alan Joyce is spending it on takeovers rather than addressing its failures over staff and customers. It already owns 19.9% of Alliance Airlines and wants to spend another $641 million to buy the rest. In classic corporate double-speak, Qantas claims that:
We’re confident our acquisition of Alliance does not substantially lessen competition.
So why do it then? No such takeover of a competitor was ever done to maintain competition or to keep prices low.
The ACCC doesn’t seem to think so either. Nor do the two other main competitors in the FIFO market, Rex and Virgin – both vigorously opposing the deal. ACCC previously spent three years examining the 19.9% Qantas ownership, finding nothing wrong with it, but it has now given Qantas two more months to explain how the acquisition is not going to reduce competition, with a final ruling due in November.
As if Qantas CEO Alan Joyce and his team of executive baggage handlers don’t have enough on their plate…
Joyce is spoiling for a fight with unions (pity about Qantas customers)
