Spare flight capacity shows how airfares could be cheaper

Qantas boss Alan Joyce’s claim that allowing rival Qatar Airways to have more flights would “distort the market” has been shot out of the air.

Qantas boss Alan Joyce’s claim that allowing rival Qatar Airways to have more flights would “distort the market” has been shot out of the air.

The flying kangaroo’s codeshare partner Emirates is leaving almost 100 flight spots to the Middle East unused while Qatar’s request for just one more a day into Sydney has been blocked by the federal Government.

“Some of the claims being made to justify the restriction of a key competitor in the Australian aviation market just don’t stack up,” shadow transport spokeswoman Bridget McKenzie said.

“Increasing the number of international flights puts downward pressure on airfares. This is economics 101.”

Mr Joyce told a senate cost of living inquiry this week that allowing rival Virgin Australia’s international partner Qatar Airways to double its flights into the country would lead to a “distortion” of the market before all airlines returned to pre-Covid levels.

Alan Joyce’s claims have been shot down. Picture: NCA NewsWire / David Geraghty

Assistant Treasurer Stephen Jones justified the decision to stop Qatar Airways from doubling its flights to two a day because it would make the market “unsustainable” for Qantas.

But analysis of flight data by The Daily Telegraph shows that flights to Europe through the Middle East are down 27 per cent on pre-Covid levels and airfares are up by as much as 50 per cent. Figures that helped Qantas last week return a bumper $2.5 billion profit.

Qantas codeshare partner Emirates and rival Etihad are allowed to fly 168 flights a week to the Middle East but are using just 70 of those slots – leaving 98 vacant. Qatar wants one more a day into Sydney.

“Additional capacity should be freed to be used by other airlines so that Australian travellers have greater choice of destination and lower airfares,” Ms McKenzie said.

There are an average of 107 international flights into Sydney Airport every day – 35 of those are Qantas flights.

Qatar Airways wants to increase its flights into Sydney Airport to two a day. Photo - Qatar

Sydney Airport chief executive Geoff Culbert confirmed there was an imbalance in the bilateral flight agreement between Qatar and the United Arab Emirates.

“168 flights are allowed from the UAE per week and only 70 are being used. Conversely, Qatar Airways is allowed 28, and is using all of them,” he said. “Seats from the Middle East remain 27 per cent below pre-Covid levels. In the interests of the travelling public and the Australian tourism industry we need to find a way to close that gap as quickly as possible.”

Virgin boss Jayne Hrdlicka said it was “a nonsense” to say there could be market distortion when so little capacity had been recovered after Covid.

“Qantas and Emirates, together as partners, have roughly 45 per cent share to Europe over the Middle East, and Qatar has about 23 per cent and would add maybe two per cent share to their total of the capacity between here and Europe by adding these additional services,” she said. “So, there‘s no market distortion that can be argued as a reason not to add Qatar’s flights.”

Originally published as Spare flight capacity shows how airfares could be cheaper