Qantas warns government not to review Qatar Airways’ decision on 28 extra flights a week
The airline has warned the Albanese government not to review its Qatar Airways’ decision, saying it would be out of step with an internationally recognised process.
Qantas has warned the Albanese government against a review of the decision to deny Qatar Airways more flights into Australia, in its long awaited submission to the Senate inquiry into bilateral air rights.
Qatar applied for a review to the Department of Infrastructure and Transport, after its application for 28 extra flights a week into Australia was rejected by the government in July without explanation.
Various organisations and individuals have urged the government to review the decision including Virgin Australia, former ACCC chair Alan Fels and the Australian Travel Industry Association.
The department had until October 26 to respond to the request from the Qatar Civil Aviation Authority, but Qantas warned the government such a move would “put Australia out of step with other jurisdictions in an environment where reciprocity is critical”.
“In analogous fields such as trade or taxation, there are no appeal provisions in respect of other government-to-government agreements,” said Qantas’s submission to the Senate Committee.
Qantas also called out tourism industry claims the additional Qatar Airways flights would help boost international visitor numbers, saying most of the airline’s passengers were Australians.
“In terms of inbound tourism, Qatar Airways carries a disproportionately high number of outbound Australian-based passengers,” said the Qantas submission.
Data published by the Bureau of Infrastructure, Transport and Regional Economics supported that view, showing passenger loads under 70 per cent on inbound Qatar flights, and 87 per cent on outbound services.
“On that basis, suggestions that granting the Qatar Civil Aviation Authority application would have materially advanced the Australian tourism industry’s recovery are overstated,” Qantas said.
The nine-page submission was lodged on Wednesday, a week after Qantas executives appeared before a public hearing where chief executive Vanessa Hudson was admonished for not providing a written statement.
“If Virgin and Rex can do it, I do not understand why the largest and most dominant carrier in the country can’t respect this committee by putting pen to paper and addressing the terms of reference,” said Nationals Senator Bridget McKenzie, the committee chair.
The submission mostly repeated previous Qantas statements on airfares, flight delays and cancellations and Sydney Airport slots, as well as the view that the Australian aviation market had never been more competitive.
Concerns about Qantas’ “aggressive” lobbying of governments, were addressed by the submission, which said “there seemed to be an underlying suggestion Qantas was not entitled to put forward its position”.
In the course of last week’s public hearing, it was revealed Qantas opposed the extension of the competition watchdog’s airline monitoring reports, which were subsequently canned.
Qantas stated that it interacted broadly with a wide range of agencies, advisers and members of parliaments, on topics ranging from airline performance to complaints about Covid credits.
“In turn, Qantas is often consulted by government in relation to policies that would impact the broader aviation and tourism industries,” said the submission.
It went on to add that it was important those interactions with government or the Opposition were in “strict confidence”.
“It is our view that a critical hallmark of a robust democracy is the ability of parties to convey their perspective on issues to the government and opposition without hesitation, and particularly without fear of (lawful and appropriate) confidential disclosures being disclosed inadvertently or deliberately,” Qantas said, in response to pressure from the Senate Committee to reveal all about its discussions with Minister King and the Prime Minister.
The committee was expected to deliver a report on bilateral air rights on Monday, as it awaited the return from overseas of former Qantas CEO Alan Joyce.
Minister King has also been invited to appear before the committee, but is yet to respond.
Senator McKenzie said the inquiry had heard powerful evidence but for full transparency Mr Joyce and Minister King needed to give evidence.
“While we are pleased with the results from the inquiry, there are still questions to be answered,” Senator McKenzie said.
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