Qantas has reached an agreement to fully acquire Australia's Alliance Aviation Services to better serve the growing resources sector. The agreement is subject to a vote from Alliance shareholders and competition clearance, and would see Alliance become a wholly-owned part of the Qantas Group, Qantas says in a statement today. Qantas bought just under 20% of Alliance in February 2019 and at the time flagged its long-term interest in acquiring 100% of the airline. It adds that the Australian Competition and Consumer Commission investigated that minority holding for three years and made no findings that it lessened competition. Under the latest agreement, Qantas will acquire the remaining 80% stake in Alliance through a scheme of arrangement where Alliance shareholders receive Qantas shares worth A$4.75 ($3.44) for each Alliance share they hold, representing a 32% premium to Alliance's volume weighted average price for the past three months. Qantas said it would issue new shares valued at approximately A$614 million in a transaction that is expected to be earnings per share accretive for Qantas shareholders, before synergies. Qantas adds that there is no change to its arrangements with Alliance as a result of this announcement given the approvals required, which would take a minimum of several months to secure. Qantas Group chief executive Alan Joyce says that acquiring the remaining shares in Alliance would mean QantasLink can better compete in the highly competitive charter segment, particularly given the shared fleet type of Fokker aircraft. Alliance, which has a fleet of 70 jet aircraft that seat up to 100 people each, accounts for around 2% of the total domestic market between these charter services and a small number of passenger routes that overlap with large mine sites, according to Qantas. Qantas is Alliance's biggest single customer, with a long-term agreement that sees Alliance operate up to 18 newly acquired Embraer E190 jets for QantasLink. This arrangement has helped open new direct routes and increase frequency across regional Australia, it says. Joyce adds: "Alliance's fleet of Fokker aircraft is perfect for efficiently serving resources customers in Western Australia and Queensland. They also have a big inventory of spare parts that would significantly extend the practical life of a combined fleet of around almost 70 Fokkers." Qantas says it will continue to update the market on expected completion timing as the competition clearance and Alliance shareholder vote processes progress.

The European Commission has approved €1.9 million ($2 million) in state aid to Romanian carrier Tarom to compensate for losses on 14 routes from July to December 2020, as a result of the Covid-19 pandemic. Tarom experienced a steep decline in traffic and profitability during the reported period. Approved under regulations relating to compensation for companies in exceptional occurrences, the aid will take the form of a capital injection. It follows the approval in October of compensation for damage suffered between 16 March and 30 June 2020.

Airbus is nearing the beginning of A321XLR flight tests as the first aircraft emerges from the company's paint shop in Hamburg. The European airframer released a video via Twitter on 2 May that shows the twinjet (MSN 11,000) being painted at Airbus' facility in the German city. The aircraft bears the registration F-WXLR. Flight tests will begin in 2022 for entry-into-service scheduled next year, Airbus said in December 2021. Two additional A321XLRs (MSNs 11058 and 11080) are being assembled in Hamburg that will be involved in the flight test programme. The first aircraft is powered by CFM International Leap-1A engines and will be partially furnished with a passenger cabin in addition to flight test equipment. Pratt & Whitney's PW1100G is an alternative engine option on the A320neo family. Airbus previously said that the main difference in the A321XLR's production process versus other A321 variants is at section assembly level, in the pre-final assembly line, where a rear centre fuel tank is being installed in the aircraft aft fuselage, below the main deck. Capable of holding 12,900 litres of fuel, the rear centre tank increases the twinjet's range – in combination with an additional, optional forward centre tank – to 4,700nm (8,700km), from 4,000nm on the A321LR. Other changes on the A321XLR include a modified fuel-management system and a larger wastewater tank to accommodate longer flights. Data shows that Airbus has received 205 A321XLR orders. The airframer's A321neo backlog comprises 3,459 orders. Some 741 A321neos have been delivered, including 69 A321LRs. Of the A321neo fleet, 49 aircraft are listed as being in storage. Airbus's A320neo and A319neo backlog stand at 2,345 and 64 orders, respectively.