Transport Minister Catherine King has backed the federal government away from a junior minister’s assertion she blocked Qatar Airways’ software for an additional 28 flights every week completed to guard Qantas’ profitability.
Assistant Treasurer Stephen Jones informed The Australian Financial Review on Monday that whereas the federal government might “drive prices down” by extending Qatar Airways’ air rights, it risked making it “unsustainable for the existing Australian-based carrier.”
Ms King final month rejected Qatar’s software for an additional 28 flights every week, saying they had been “not in the national interest” however wouldn’t clarify additional.
On Monday, she was compelled to deal with Mr Jones’ assertion.
“I wouldn’t have used the same words that Stephen did,” Ms King mentioned.
“There’s no one factor that swayed my consideration one way or the other.”
Qatar Airways had utilized for permission to launch 28 new flights per week. Just final week, Qantas introduced a document underlying revenue of $2.47bn.
Separately at a business lunch in Perth on Monday, Treasurer Jim Chalmers referred to the choice to dam Qatar Airways’ software as one made independently by the Transport Minister.
“It was Catherine’s decision,” the Treasurer mentioned.
Qantas had beforehand lobbied the federal authorities to dam Qatar Airways’ software.
The choice to dam has confirmed to be terribly controversial with the federal government going through criticism for stifling competitors within the aviation sector, whereas on the similar time, launching a two-year evaluate to enhance the nation’s competitors coverage.
Virgin Australia mentioned worldwide airfares had been being saved excessive by an absence of capability, and raised considerations with Mr Jones’ assertion.
“Any suggestion that denying Qatar additional flights was designed to protect Qantas’ medium-to-long term sustainability neglects the fact that blocking Qatar damages the domestic and international competitive position of Virgin Australia in favour of Qantas,” chief company affairs & sustainability officer, Christian Bennett mentioned.
“Virgin Australia … is the main source of competition to the Qantas Group, and that task is challenging enough without Qantas having public policy designed for its benefit.”
Condemnation from Australia’s journey business – which argues that the choice to disclaim Qatar Airways’ software will value the tourism business as much as $788m a yr – has additionally added to the federal government’s woes.
In response to written questions, Ms King skirted Mr Jones’ assertion, saying a “range of factors” had been thought-about when figuring out whether or not an enlargement of air rights was inside Australia’s “national interest”.
“The government has decided not to approve the Qatar Civil Aviation Authority request for additional services at this time,” Ms King mentioned.
Outgoing Qantas chief govt Alan Joyce on Monday at a Senate inquiry mentioned the federal government’s choice was within the nationwide curiosity.
“Various countries around the world protect their national interest and I think what the assistant treasurer was referring to is that Australia should protect its own national interest,” Mr Joyce mentioned.
“That is making sure we get reciprocal or other arrangements when you grant traffic rights [to international carriers].
“I don’t think anyone would say you should grant traffic rights that are disadvantageous to the national interest.
“That’s what the assistant treasurer was saying in our mind, and we would agree with that.”
The Qantas boss additionally pointed to the current bilateral air rights rejection in Fiji to say that air rights rejections had been comparatively commonplace.
“Qatar can add capacity through flying bigger aircraft to cities like Adelaide, Darwin. There is nothing stopping them from adding capacity to those locations,” Mr Joyce added.
Source: www.perthnow.com.au
