Private Equity Firm Abandons Plans to Buy Alliance Airlines

By Andrew Curran.

Sydney-based private equity firm Pacific Equity Partners has abandoned plans to buy Alliance Airlines, according to The Australian newspaper.

The same outlet had previously reported that Pacific Equity Partners was assessing a potential bid for the airline, which has build up a substantial business running closed charters and wet-leasing aircraft to other operators.

While no specific reason was given for Pacific Equity Partners’ decision not to buy Alliance, the share price of the parent entity, Alliance Aviation Services Limited, has plunged this year, including a 40% plus drop late last week after news of a profit downgrade broke.

Alliance’s largest shareholder is Qantas, which owns a 19.7% stake in the business and also wet-leases twenty-seven Alliance E190s to use on its RPT routes. In 2023, the Australian Competition and Consumer Commission blocked a bid by Qantas to buy the remaining 80% plus stake in Alliance. Consequently, Qantas is reportedly open-minded about selling out entirely, although maybe not at the current share price.

Other significant shareholders in Alliance Aviation Services Limited include HSBC Custody Nominees (Australia) Limited (19.55%); JP Morgan Nominees Australia Pty Limited (9.42%); Bond Street Custodians Limited (9.26%); Kiowa Two Thousand Corporate Trustee Company Limited (7.21%); Citicorp Nominees Pty Ltd (5.28%): and Hugh and Pixie Jones and Raymond Clarke (3.89%).

The Australian suggests Hugh Jones, one of Alliance’s founders, had supported the plan by Qantas to buy out the company and more recently, was receptive to interest from Pacific Equity Partners. Jones had been “agitating for change,” according to the newspaper.

Even though Pacific Equity Partners may have abandoned plans to buy Alliance Airlines, the revenue-generative company remains profitable and could attract the interest of other private equity investors, especially as its share price is now so low.

Alliance Aviation Services Limited opened 2025 trading at around AUD2.98 per ordinary share. At the start of trading on November 11, its share price was around AUD1.35.

Photo: Alliance Airlines.