The Qantas Airways Ltd (ASX: QAN) share price ended the week on a high.
Qantas shares gained 1.44% on Friday to finish at $5.275. For perspective, the S&P/ASX 200 Index (ASX: XJO) fell 0.27% on the last day of the week.
Let's take a look at what is going on at Qantas.
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What's going on?
Qantas shares have lifted 16% since market close on 24 August. Qantas released FY22 results revealing a statutory loss before tax of $1.19 billion on 25 August. However, the company also announced a $400 million share buy-back.
In today's news, Qantas' proposed acquisition of Alliance Aviation is facing more opposition.
Katter's Australian Party leader Robbie Katter has written to the ACCC, voicing his concerns about the takeover bid.
Qantas advised of its plan to take over Alliance in May. Alliance has 70 aircraft with up to 100 seats, suitable for charter services. Qantas believes the acquisition would mean QantasLink can compete in the "highly competitive charter segment". However, this acquisition is subject to approval from the ACCC.
In a release today, Katter said the merger "could only have a detrimental effect on rural and remote customers. He added:
I personally believe the total acquisition of Alliance by Qantas will do little but intensify the vast problems already being experienced on the Mount Isa and similar routes.
On 18 August, the ACCC expressed it has preliminary competition concerns with the proposed acquisition. ACCC chair Gina Cass-Gottlieb said at the time:
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 Queensland and Western Australia for corporate customers.
Meanwhile, the national cabinet has recently agreed masks will no longer be required on domestic flights in Australia from 9 September.
A Qantas spokeswoman welcomed the decision, telling the Financial Review it "brings Australia into line" with the United States, the United Kingdom and European countries who have "not required masks onboard for several months".
Qantas share price snapshot
Qantas shares are up 1% in the past 12 months and are tracking 5% higher year to date.
In the past month, the Qantas share price has surged nearly 14%.
Qantas has a market capitalisation of more than $9.9 billion based on the current share price.
