Scarlett
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IIRC up until the mid to late '00s, a subsidiary company called Qantas Defence Services had the contract as the in-house travel provider for the Department and not surprisingly steered nearly all of Defence travel needs through Qantas. I think it was also around this time that lounge membership was virtually de rigeur. A cosy relationship indeed.
It was not quite the ‘cozy relationship’ you’re making out.
Qantas Defence Services (or similar name) was set up to manage the Defence travel contract, which at that time was a contract with... Qantas. QF offered (apparently) lower fares and won the contract. So it was business as expected.
Nowadays, the travel contract is Whole of Australian Government, so Defence doesn’t have its own contract, it follows the BFOD rules like everyone in the Fed Govt. Last I heard the people (company?) that do the WoAG travel bookings were QBT (Qantas Business Travel) the evolution or continuation of the previous travel bookings provider. And they only book BFOD as per the rules.