An Australian Senate inquiry has called for immediate action to review the federal government’s decision to block Qatar Airways from launching extra flights to Australia.
The Senate Select Committee on Bilateral Air Service Agreements released its final report on October 9, 2023, recommending that the Albanese government reverse its decision and allow Qatar Airways to increase its capacity into Australia’s major airports.
The committee also called for the Australian Competition and Consumer Commission (ACCC) to have a significantly expanded role in the aviation industry, in order to promote competition and protect consumers.
“Perplexing and seemingly inconsistent”
The inquiry was set up to examine the government’s rejection of Qatar Airways’ request to almost double its capacity into Australia. The government’s decision was controversial, with many industry stakeholders arguing that it would harm competition and consumers.
The Senate committee’s report found that the government’s decision to block Qatar Airways’ request was “perplexing and seemingly inconsistent” with its stated policy of promoting competition in the aviation sector.
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The committee also found that the government had not adequately considered the impact of its decision on consumers or on the wider economy.
A win for consumers
The committee’s recommendations have been welcomed by the aviation industry and consumer groups. The Australian Federation of Travel Agents (AFTA) said the report was a “win for consumers” and would lead to lower fares and more choice for travellers.
The Consumers’ Federation of Australia (CFA) also welcomed the report, saying it would “help to restore competition to the Australian aviation market.”
However, the government has not yet responded to the report. Transport Minister Catherine King has labelled the Senate inquiry as a “political stunt” by the Coalition opposition.
The government’s decision to block Qatar Airways’ request has been widely seen as being motivated by a desire to protect Qantas, Australia’s flag carrier.
Qantas has been a vocal critic of Qatar Airways, accusing it of receiving unfair government subsidies. However, the Senate committee’s report found that there was no evidence to support Qantas’ claims.
The committee also found that the government’s decision to block Qatar Airways’ request was likely to harm Qantas in the long run, as it would make it more difficult for Qantas to compete on international routes.
Implications of the Senate committee report
The Senate committee’s report has a number of implications for the Australian aviation industry and consumers.
In the short term, the report is likely to lead to increased competition on international routes. Qatar Airways is one of the world’s leading airlines, and its entry into the Australian market would force other airlines to lower their fares and improve their services.
In the long term, the report could lead to a more sustainable and competitive Australian aviation industry.
The government’s decision to block Qatar Airways’ request was seen by many as a protectionist measure designed to benefit Qantas. However, the Senate committee’s report found that this approach is not sustainable in the long run.
The Senate committee’s report also highlights the need for greater transparency and accountability in the government’s decision-making process on aviation matters. The government’s decision to block Qatar Airways’ request was made without adequate consultation with the aviation industry or consumers.
The report puts significant pressure on the government to review its decision on Qatar Airways and to adopt a more competitive approach to aviation policy.
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