The Australian Federal Aviation Authority has agreed to acquire IAF Aerial Operator, the last remaining private operator in the IAF, in a deal valued at $15 million.
IAF Aerial Operators operates more than 3,000 aircraft from remote locations in Australia, including a fleet of four Boeing 767-300ER aircraft.
The agreement will see IAF become Telstra’s first IAF operational aircraft supplier.
It will also provide Telstra with the option of providing aircraft services to its network, including air traffic control, for up to 20 years.
Telstra’s contract with IAF to provide aerial communications services for the IAAF has ended with the agreement.
The acquisition of the IASA, which has been the backbone of the air traffic controllers’ association since it was formed in 2001, comes as the IAA has seen a drop in traffic from the ICAO.
Last year, the agency reported it lost $4.8 million in revenue.
Under the deal, Telstra will retain its current ownership of the company and will provide IAF with aircraft services, including the option to provide the aircraft to Telstra, for 20 years after the IAO ends.
“The acquisition is a strategic one and one that has the potential to deliver a significant benefit to Telstar, Telcom, and our business and customers,” Telstra said in a statement.
There will be an immediate impact on Telstra customers who use the IANA aircrafts, as the deal will enable Telstra to provide aircraft services for Telstra and other network operators in the event of an outage, Telstar said.