Qantas rejects easing restriction on foreign carriers

The Qantas Group has warned against slashing restrictions on foreign carriers moving Australian domestic passengers.

The Qantas Group has warned against slashing restrictions on foreign carriers moving Australian domestic passengers, declaring even a “lite” version of this could pose a risk to jobs and investment.

In a new submission to the Senate’s red-tape committee chaired by David Leyonhjelm, Qantas says that abandoning cabotage restrictions would have “stark” consequences.

“A cabotage policy would have serious domestic and international impacts, materially erode the asset profiles of Australia’s airlines, negatively impact future investments and be viewed as a risk by current and future investors,” the submission to the parliamentary committee warns.

The idea of allowing aviation cabotage rights north of the Tropic of Capricorn was considered by the government in 2015 after it was raised in the Harper review and a green paper Northern Australia, but the idea was opposed by Qantas and Virgin and the Department of Infrastructure and Regional Development.

Airport giants have also previously pushed for greater liberalisation of air-service agreements for international routes, which could allow foreign carriers to increase flights to the biggest cities.

But in the submission, Qantas says any move to introduce cabotage would be a threat to Australia’s strategic assets and see the nation lose a bargaining chip on any future common aviation zone for the ASEAN region.