Qatar denied extra capacity into Australia

[SYD]

<redacted> The federal opposition leader is jumping on the bandwagon criticising the Government decision.

Tony Sheldon calling AJ to a “Cost of living” enquiry could backfire if the Government is responsible for maintaining high international fares…

 

[levelnine]

It's taken a little while, but the Government is finally starting to admit the real reason they blocked Qatar's request. The early excuses of human rights abuses, environmental sustainability, etc are long gone:

Assistant Treasurer Stephen Jones says Qantas’ record $2.5 billion profit was “a good news story” and the Albanese government blocked more Qatar Airways flights to keep the national carrier profitable.

Responding to questions from The Australian Financial Review about what the “national interest” was in blocking an additional 21 Qatar Airways flights into Australia each week, Jones indicated the Albanese government didn’t want to create too much competition for Qantas.

“We can drive prices down but if we drive them down to a level where it’s actually unsustainable to run an airline, instead of having two carriers we will design our markets in a way which will make it unsustainable for the existing Australian-based carrier,” he told reporters on Monday morning.

Protecting Qantas is the government’s job, says Stephen Jones

The assistant treasurer says the government blocked more Qatar Airways flights to keep Qantas profitable; rescue crews have worked through the night after a military plane crash killed three US marines in the NT. Follow updates here.

www.afr.com

 

[FlyingKangaroo]

Finally admitting the quiet part out loud. It really was that simple. Not that it wasn't already deafeningly obvious.

What a spectacular own goal for the government, especially given -- as both government and Qantas have correctly noted -- most competitors in our key markets are welcome to add as much capacity as they like thanks to open skies agreements.

Given that, would an extra 28 flights per week have really made a material difference? Many of the same people saying "no" in an effort to minimise the significance of Qatar decision are the same people who denied QR those flights and/or supported that decision. Funny, that.

 

[Human]

That's just incredible. Especially given Virgin's partnership with Qatar -- not only is the government artificially propping up Qantas, it's also deliberately undermining Virgin.

 

[FlyingKangaroo]

That's just incredible. Especially given Virgin's partnership with Qatar -- not only is the government artificially propping up Qantas, it's also deliberately undermining Virgin.

And openly --- which is particularly astounding given that as much as the airline (and government apparently) like to call Qantas the "national"/"flag" carrier, it is in fact a private company. Has the Assistant Treasurer not been made aware of this?

 

[Must...Fly!]

Whoever came up with this latest media strategy is probably next up on the Canberran guillotine

 

[jrfsp]

AJ appearing before senate hearings currently....

 

[Mattg]

Virgin Australia's Chief Corporate Affairs & Sustainability Officer has just issued this public statement:

Comments today regarding airline financial sustainability only further confuse the substance for denying Qatar additional flights between Australia and Europe. This is particularly so given the inevitable changes in the shape of post-COVID global aviation.

Australian consumers are paying on average 50% more today for international flights than they did in 2019. This is due to a lack of capacity. Denying Qatar additional flights keeps airfares between Australia and Europe unnecessarily higher than need be and denies the Australian tourism industry over $500 million in economic stimulus.

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.

Virgin Australia delivers great value and great choice to Australian consumers every day. It 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.

Virgin Australia remains committed to finding a practical path forward with respect to additional Qatar flights so as to deliver lower international airfares to Europe and to boost both Australia's tourism sector and trading competitiveness.

 

[RooFlyer]

It's taken a little while, but the Government is finally starting to admit the real reason they blocked Qatar's request. The early excuses of human rights abuses, environmental sustainability, etc are long gone:

This story has been moved:

Labor blocked Qatar flights to protect Qantas’ profit

As the government talks tough on competition policy and prepares a crackdown on firms using market power to dud consumers, one minister says Qantas is a special case.

www.afr.com

 

[RooFlyer]

The Assistant Treasurer supports Qantas and Qantas supports the Assistant Treasurer. Isn't that sweet. AFR (links above)

 

[FlyingKangaroo]

Well that settles it: we're all in agreement and especially in agreement that there has not been any collusion. /end of thread.

 

[SYD]

AJ appearing before senate hearings currently....

 

[Spacetravel]

Virgin Australia's Chief Corporate Affairs & Sustainability Officer has just issued this public statement:

Now this is coming to light, does VA (or QR) have any recourse? Could they take the government to court to challenge this some how or is it still tough luck.

 

[FlyingKangaroo]

Now this is coming to light, does VA have any recourse? Could they take the government to court to challenge this some how or is it still tough luck.

Realistically: no. The decision is ultimately at the government's discretion and was officially made vis-à-vis the Qatari government, and the government is entitled to do what it likes in making that decision, even if its reasons are deemed outrageous by some if not most.

If it could be proven that Qantas or anyone else had actively lobbied the government in any way that led cabinet to make a decision that was a breach of professional standards, or which misused another party's confidential information, then there might be a case to refer to the ethics committee, but that's a tall order and even then is not really VA's domain.

 

[Spacetravel]

Qatar Airways: Hey we would like to increase flights to increase competition
Government: No we want to protect Qantas's profit
Also Government: Hey why are airfares so high

 

[FlyingKangaroo]

Qatar Airways: Hey we would like to increase flights to increase competition
Government: No we want to protect Qantas's profit
Also Government: Hey why are airfares so high

As to the first premise: I'd actually be fascinated to see Qatar (as in the government) try and ask again.

 

[Must...Fly!]

This whole thing is an entire embarrassment. I hope the pressure is kept on the government on this, it's deplorable.

Canberra gave up the right to back Qantas on a commercial basis when they (rightly) floated the airline and exited an ownership position.

As a mate of mine put it: "all those billions, and the government doesn't even have a seat on the board"

 

[FlyingKangaroo]

As a mate of mine put it: "all those billions, and the government doesn't even have a seat on the board"

But they do have a seat in the Chairman's Lounge.

 

[Daver6]

The partners at PWC will be loving this! Hey look....the same government that's been having a go at us is no better. In fact, they're taking bribes (CL access) to look the other way.

 

[SYD]

The partners at PWC will be loving this! Hey look....the same government that's been having a go at us is no better. In fact, they're taking bribes (CL access) to look the other way.

I suspect the CL access (and other Public Service and ADF benefits - in lieu of points earning) is all part of the Commonwealth contract. Lucrative as that is!