Qantas Airways Ltd
(ASX:QAN) is set to take advantage of Western Australia’s mining boom with the planned purchase of a charter airline in the state, says The Australian Financial Review.
According to the report the airline is in the last phase of discussions for the agreed sale of Network Aviation, the third largest regional airline in Western Australia.
Competition is heating up in the Australian aviation industry and airlines are increasingly looking towards mergers and acquisitions to boost their share of the market.
In September Qantas was rumoured to have been looking at a series of joint ventures for its budget airline Jetstar, and the airline was reportedly a merger target from British Airways.
AFR says the deal with Network Aviation is worth in excess of $30 million and would allow Qantas to co-ordinate flight schedules for inbound flights to Perth and outbound flights to mining destinations.
For the twelve months to 30 June, Qantas booked a $116 million profit.
