The Australian Competition and Consumer Commission (ACCC) has disclosed that Qantas Airways' proposed acquisition of Alliance Aviation Services has raised preliminary competition concerns. "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," ACCC chair Gina Cass-Gottlieb says in a statement today. In Australia, Qantas and Alliance provide air transport services to regional and remote areas for corporate customers, the commission says. The airlines closely compete in the supply of these services to mining and resource companies who need to transport fly-in fly-out workers in Queensland and Western Australia. Qantas currently owns just under 20% of Alliance and is said to be its biggest customer, wet leasing up to 18 Embraer aircraft that Alliance operates on the carrier's behalf on a number of routes. In May, Qantas announced it had reached an agreement to fully acquire Alliance. "This merger would combine two of the top three operators of air transport services in Queensland and Western Australia," Cass-Gottlieb adds. The proposed acquisition would remove Alliance as the only competitor to Qantas on the Brisbane-Moranbah regional passenger transport route, it adds. The commission is considering the level of competition provided by airlines such as Virgin Australia and Cobham Aviation's regional services arm National Jet Express. The latter was recently purchased by Regional Express. 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 Qantas on regional routes. Cass-Gottlieb further adds: "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 Qantas' competitors is likely to significantly increase these barriers." In response to this, Qantas has reaffirmed its view that its acquisition of Alliance Aviation would not lessen competition in Australia's highly competitive charter segment.There are a significant number of charter operators of different sizes and that makes it an extremely competitive segment," Qantas Group executive of associated airlines and services John Gissing says in a statement today. "We're confident our acquisition of Alliance does not substantially lessen that competition and we'll work through the ACCC's process to support that position and address their initial concerns." The ACCC is seeking submissions from interested parties in response to the statement of issues by 1 September. The final decision is scheduled for 17 November.

Sustainable aviation fuel will become less expensive for airlines in the USA to purchase under a new SAF tax credit programme included in the US Inflation Reduction Act, which was signed into law by President Joe Biden on 16 August.
From 1 January 2023, a $1.25 per gallon tax credit will be available for SAF blends that reduce lifecycle greenhouse-gas emissions by at least 50%. The tax credit will rise by one cent for each percentage point by which the fuel's lifecycle GHG reduction exceeds 50%, up to a maximum of $1.75 per gallon. The credits will be available in this format until the end of 2024. From the beginning of 2025 until the end of 2027, the Clean Fuel Production Credit will be introduced for all low-carbon transportation fuels including aviation. Under this programme, SAF credits of up to $1.75 per gallon will still be available – up to 75 cents per gallon more than the amount other forms of transport will be eligible to receive. In September 2021, the Biden administration set a "Sustainable Aviation Fuel Grand Challenge", aimed at increasing the production of SAF in the USA to at least 3 billion gallons a year by 2030. The new SAF tax credits are aimed at helping that goal come to fruition. IATA has welcomed the signing into law of the new credit. "We definitely welcome it and believe it will spur SAF production in the US, and thereby support the industry's commitment to net zero by 2050," the association says. The Inflation Reduction Act also includes incentives for the production of clean hydrogen and grants for SAF producers.

Unions representing cabin crews at Spanish airline Iberia Express have announced plans for strike action from 28 August to 6 September in a bid to "unblock" negotiations on a collective labour agreement. In a joint statement, the USO and SITCPLA unions say they have called the 10-day action by 517 crew members at Iberia Express's Madrid base after the carrier refused to improve an offer made to staff. Negotiations on a collective labour agreement that began in December last year have failed to yield agreement on working conditions. USO and SITCPLA accuse Iberia Express of opposing any union proposal and "offering alternatives far from reality". The unions are seeking to link salaries to inflation, especially given that pay rates have been frozen for seven years, they say. In addition they are seeking salary increases of 6.5% against 2021 and the creation of two pay bands with raises of 11% and 4%, plus bonuses and improvements to transport payments. "We are very disappointed with the management of Iberia Express, who has shown no word or respect for the workers who have fought to keep the company afloat while they will receive millionaire benefits this summer," states USO delegate Adriana Escauriaza. "We trust that they will reconsider their proposals and land on the reality that surrounds their workers." Iberia Express, a subsidiary of flag carrier Iberia, is a low-cost short-haul carrier which mostly operates to and from Madrid Barajas airport and has, 19 Airbus A320-family jets in service.