Anthony Albanese flies blind in Qatar flights storm

The PM reveals he was unaware of the decision to block Qatar Airways from securing more flights to Australia when he held talks three days later with Virgin boss Jayne Hrdlicka.

Anthony Albanese and Qantas CEO Alan Joyce attend the Qantas 100th anniversary celebrations in Sydney in March. Picture: Getty Images

Anthony Albanese faces fresh ­demands to explain what and when he knew about the blocking of Qatar Airways’ bid for more flights into Australia, after admitting he held discussions with Virgin Australia chief executive Jayne Hrdlicka, unaware a decision had been made three days earlier.

As Qantas chief executive Alan Joyce quit his role immediately amid multiple crises – in an ­attempt to stem the airline’s reputational damage – the Prime Minister was forced to correct an answer he gave parliament about when he knew the Qatar bid had been blocked. Mr Albanese ­revealed he had been blindsided by Transport Minister Catherine King, who made the call without his knowledge.

Mr Joyce announced on Tuesday that he would leave Qantas two months ahead of schedule and after 15 years in the top job as the airline faces scrutiny over its handling of $570m in travel credits, allegations of slot hoarding at Sydney Airport and a lawsuit over thousands of cancelled flights carrying the prospect of a record penalty of more than $250m.

Mr Joyce, who still stands to pocket a final payout of about $24m, faces further heat over his massive share sell-off in June, his close relationship with the government and Qantas’s role in the decision to block more Qatar Airways’ flights. After discussions with Qantas board chairman Richard Goyder over the weekend, Mr Joyce said he decided on Monday night to bring forward his retirement from November.

In a statement to the stock exchange, Mr Joyce said the “events of the past make it clear to me that the company needs to move ahead with its renewal as a priority”.

Mr Goyder also revealed the airline would consider whether to withdraw executive bonuses to Mr Joyce, telling The Australian: “If you look at our remuneration report, there’s provisions for ­clawbacks.”

While he held limited meetings with investors, Mr Goyder ­expected to hold further talks in the next few days.

After weeks of political pressure, Mr Albanese on Tuesday ruled out any discussions with Qantas executives or Mr Joyce on the Qatar application for more flights, amid accusations from the Coalition it was part of a “sweetheart deal” aimed at protecting the national carrier. “I once again confirm I did not speak to the former Qantas chief executive before a decision was made,” he said.

But, responding to a question from Peter Dutton, Mr Albanese admitted discussing the Qatar Airways application with Virgin ­before the government had arrived at a final position – an answer that suggested he was involved in the decision despite his claims to the contrary last week.

He was then forced to update his answer, revealing he had just been informed that Ms King had knocked back the Qatari bid three days before Mr Albanese held ­discussions with Ms Hrdlicka on July 13.

“I rise to add to an answer I gave earlier today,” Mr Albanese said. “I spoke to the Virgin chief executive on July 13, 2023, by phone from Perth while in transit to Canberra from the NATO summit and bilateral visit to Germany from July 9 to July 13.

“In that call the chief executive made representations relating to air services arrangements with Qatar. During that discussion, I did not know that the Transport Minister had made a decision on July 10, 2023 – a detail that has only been advised to me after question time today.”

Ms King’s decision was widely reported on July 18.

The clarification from Mr Albanese generated heightened interest in the timeline relating to the Qatar decision, who within and outside the government was consulted and when – including the Prime Minister himself.

The Opposition Leader told The Australian there were now fresh questions for Mr Albanese to answer, and called on the Prime Minister to reveal what he discussed with Ms Hrdlicka in his phone call and what Virgin Australia wanted.

“The Prime Minister’s story just doesn’t add up and every ­answer gives rise to more questions,” Mr Dutton said.

“The public needs to know what he was asked for, ­his ­response and what was discussed. His version of when he and others learned of the decision doesn’t add up.”

Opposition transport spokeswoman Bridget McKenzie said: “The Prime Minister needs to come clean on when he first learned of this decision and who told him.

“That a decision of this magnitude and impact was not ­discussed within the highest levels of the government is either spurious or negligent.”

Senator McKenzie said the Senate had voted to establish a special inquiry into the circumstances of the decision to block the Qatar Airways’ proposal for additional air services to Australia. The inquiry is due to report back to the Senate on October 9 and was tasked with explaining “why the Prime Minister and his government is standing in the way of cheaper airfares”.

In a letter dated July 10, the Transport Minister told five women suing Qatar Airways over their shocking treatment at Hamad International Airport in the Qatari capital Doha – where they were subjected to invasive physical searches after a newborn baby was found abandoned in a bin – that “the government was not considering additional bilateral air rights with Qatar Airways”.

“The treatment you received was disgraceful,” Ms King said. “All travellers deserve to be treated with dignity and respect.”

So far, a chorus of leading business figures, economists, competition experts and three Labor states – Western Australia, South Australia and Queensland – have all argued in favour of allowing more flights from Qatar. Labor’s national president, Wayne Swan, has urged the government to review its position and the chair of the competition watchdog Gina Cass-Gottlieb has publicly argued that allowing more flights would have reduced prices.

Vanessa Hudson will take over the top job at Qantas and said in a video message to the airline’s 25,000 workers that the “challenging times” facing Qantas would take some working through as the airline sought to repair its battered reputation.

“We know that post-Covid we haven’t always delivered to our customers’ expectations but we are listening and we hear what they are saying,” Ms Hudson said. “As a company it’s our job to get the balance right between looking after our customers, you, our people and the business itself. Right now, achieving this balance must first start with the customers and that’s what we will be focused on with our new management team.”