Senate inquiry recommends review of Qatar Airways decision, finds Qantas exercised its influence

The Albanese government has been urged to review the Qatar Airways decision after a Senate inquiry found Qantas exercised considerable influence in the matter.

Qantas executives including CEO Vanessa Hudson and chair Richard Goyder, face the Senate inquiry into bilateral air rights. Picture: NCA NewsWire/Martin Ollman

The Albanese government denied Qatar Airways more flights into Australia to protect Qantas’ market share and keep airfares high, a Senate Committee has suggested.

The committee chaired by Nationals Senator Bridget McKenzie delivered its report on Monday, after an intensive fortnight of public hearings examining the decision to refuse Qatar Airways an extra 28 flights a week.

Ten recommendations were made by the Committee, including a call for the government to conduct an immediate review of the decision.

Other recommendations sought the reinstatement of quarterly airline monitoring reports, and an Australian Competition and Consumer Commission inquiry into anti-competitive behaviour in the domestic aviation market.

The committee also wanted consumer protection measures developed to assist travellers subjected to significant flight delays and cancellations, lost luggage and devaluation of loyalty programs.

It was recommended the government urgently respond to a two-year-old review of Sydney Airport’s demand management system, to address claims of “slot hoarding” and aid with flight recovery after periods of disruption.

And further recommendations were made for the Senate to adopt resolutions to allow the inquiry to continue, to hear from former Qantas CEO Alan Joyce and Transport Minister Catherine King.

Senator McKenzie said the evidence presented to the inquiry to date, supported the conclusion the government rejected Qatar Airways’ request because of interventions by Mr Joyce.

Qantas chairman Richard Goyder, CEO Vanessa Hudson and Qantas general counsel Andrew Finch front the Senate inquiry in Canberra. Picture: NCA NewsWire/Martin Ollman

A timeline published in the report suggested the shift in the government’s position on the Qatar Airways’ request aligned with Qantas’ support for the Prime Minister’s referendum on the Voice.

“Unfortunately, the government sought to prevent the committee from fully investigating the reasons why additional Qatar Airways flights were rejected by refusing to release documents and placing a gag on the infrastructure and foreign affairs departments,” Senator McKenzie said.

She said it was apparent that at a time of a cost-of-living crisis, the government had made decisions to protect Qantas’ market share and keep the cost of airfares higher for families and exporters.

“The committee heard evidence that Australians could have been enjoying cheaper flights to Europe and the Middle East as early as April this year had the government approved additional Qatar Airways flights,” Senator McKenzie said.

Dissenting reports were filed by Labor Senators Tony Sheldon and Linda White, and Greens Senator Penny Allman-Payne.

Senators Sheldon and White said there was “obvious bias” in the majority report coupled by a clear political agenda, and opposed any extension to the inquiry.

“Indeed, throughout five public hearings and nearly 150 written submissions, this inquiry has not revealed any information that was not already on the public record before the inquiry began,” wrote the Labor Senators.

Ms King also lashed out at the inquiry calling it a “political stunt from the Coalition that did none of the things” it wanted the Albanese government to do.

“It didn’t give Qatar 28 extra flights a week and took four years to give an extra seven,” said Ms King.

“It didn’t do anything on the slots system at Sydney airport. It did nothing to improve consumer protections. And it left the sector without a blueprint for the future.”

Qantas pointed out that bilateral air rights were a matter for government and remained unconvinced of the benefits to airline monitoring by the ACCC.

But Sydney Airport CEO Geoff Culbert praised the report as “getting to the heart of the issues facing the aviation sector for the ultimate benefit of the travelling public”.

The Australian Airports Association and Virgin Australia welcomed the report, and hoped the government would act on the recommendations.

AAA chief executive James Goodwin said it was encouraging to see the acknowledgment that Australia’s aviation sector was one of the most concentrated markets in Australia.