After a week of controversy and backlash, the Qantas fallout continues as industry heavyweights called on the Australian Government to clear the way for more Qatar Airways flights to Australia.
The quashing of extra Qatar Airways services to Australia prompted travel industry appeals for an urgent review after revelations the Federal Government blocked the proposal, seemingly to protect Qantas interests.
In July 2023, Federal Transport Minister Catherine King vetoed Qatar Airways’ request for 21 more flights per week to Sydney, Melbourne and Brisbane on top of the current 28 flights it operates weekly.
ABC News reported Qantas Group CEO Alan Joyce told last week’s Senate hearing the national interest should be paramount, confirming the airline sent a letter in October 2022 about the proposal, saying it would distort the market.
Industry-wide dismay
Last week’s backlash was swift, with Flight Centre and Virgin Australia stating there was no reason to block the Qatar Airways proposal.
Flight Centre took its criticism of the Qatar decision a step further with a national ad campaign against the Federal Government in News Corp papers on Sunday and across social media channels.
The full-page ads read: “More seats drive down prices, let ’em fly”.
Flight Centre Travel Group Global CEO Graham Turner told The Sunday Mail the campaign would “go for a while … unless the government acts”.
Flight Centre Global Managing Director Andrew Stark added via LinkedIn: “More flights mean lower airfares. It’s simple economics – more competition drives down prices. To make this happen, we need more airlines and more seats in the market.”
CATO calls for clarity
The Council for Australian Tour Operators (CATO) also called for an immediate review of the Australian Government’s decision to block the request.
“The lack of transparency surrounding this decision has raised unnecessary concerns, impacting effective forward planning for all travel and tourism operators and potentially discouraging other airlines from launching services to Australia,” the organisation said in a statement.
“Expanding air capacity into Australia is not just about convenience; it’s about providing relief from soaring fares, stimulating the economy and generating more job opportunities.
“Affordable airfares are critical for the recovery of the entire travel and tourism industry and the broader Australian visitor economy.
“We urgently call upon the government to review this decision and provide greater clarity on the decision-making process.”
Qantas in the spotlight
The scrutiny on the Qantas Group also intensified after a week where the national carrier posted a record $2.5 billion profit before tax, scrapped COVID travel credit expiry dates and faced an ACCC lawsuit for selling cancelled flights.
It was also revealed that CEO Alan Joyce, who steps down in November 2023 after a 15-year stint, will receive $125 million plus other bonuses.
