The ACCC will not oppose the proposed acquisition of Aviation Training Holdings Pty Ltd (trading as Ansett Aviation Training (AAT)) by Aviation Training Partners (ATP).
AAT is a global provider of flight simulation training services, and simulator housing and maintenance services. It has facilities in Brisbane and Melbourne and is the largest independent provider of full flight simulator services in Australia.
Full flight simulator services are essential to pilots obtaining qualifications and satisfying regulatory requirements.
ATP is a consortium which includes Bain Capital Credit, LP (Bain Credit). Bain Credit is an affiliated company of Bain Capital, LP (Bain Capital), an American private investment firm. Funds managed and controlled by Bain Capital and Bain Credit currently own a majority interest in Virgin Australia.
The ACCC's review focused on whether ATP would have the ability and incentive to restrict Virgin Australia's rivals from accessing essential flight simulation training services, given the proposed acquisition would result in common ownership between AAT and Virgin Australia.
The ACCC consulted a wide range of stakeholders including airlines and other flight simulator services providers. While some stakeholder feedback raised concerns about the potential for ATP to deny or lessen access to AAT's services, the ACCC concluded that ATP would be unlikely to do so.
"Although AAT's customers include rivals of Virgin Australia, our investigation concluded that these customers have alternative options to AAT, including by self-supplying full flight simulator services," ACCC Chair Rod Sims said.
"ATP would be unlikely to have the incentive to refuse or lessen those customers' access to its full flight simulator services to try to benefit Virgin Australia."
"Limiting access to full flight simulator services could mean giving up significant revenue for ATP and would be unlikely to significantly benefit Virgin Australia in the supply of air passenger transport services," Mr Sims said.
The ACCC also notes that AAT already currently operates the Virgin Australia Training Centre.
More information can be found on the ACCC's website: Aviation Training Partners - Aviation Training Holdings Pty Ltd (trading as Ansett Aviation Training)
Note:
In considering the proposed acquisition, the ACCC applies the legal test set out in section 50 of the Competition and Consumer Act. In general terms, section 50 prohibits acquisitions that would have the effect, or be likely to have the effect, of substantially lessening competition in any market.
Background:
Airlines are the main acquirers of Full Flight Simulator (FFS) services and the type of FFS services required will depend on the type of aircraft within the airline's fleet.
Pilots require FFS services to obtain and maintain accreditation to fly civil aircraft. These services are typically provided by four types of businesses: independent simulator operators (e.g. AAT), simulator manufacturers, aircraft original equipment manufacturers, and airlines or aircraft operators with in-house simulators.
Aviation Training Partners is a consortium comprised of Bain Capital Credit, LP (Bain Credit), Arcadia Capital Pty Ltd (Arcadia Capital) and affiliates of the leadership team of Bridger Aerospace Group (Bridger Aerospace).
Bain Credit is an affiliated company of Bain Capital, LP (Bain Capital), an American private investment firm. Funds managed and controlled by Bain Capital and Bain Credit currently own a majority interest in Virgin Australia.
Arcadia Capital is an Australian private equity firm. Bridger Aerospace is a provider of aerial firefighting and wildfire management services based in the US.
Aviation Training Holdings Pty Ltd (trading as Ansett Aviation Training) is a global provider of flight simulation training services, and simulator housing and maintenance services.
