TRANSCRIPT
A parliamentary inquiry into the government's recent decision to block Qatar Airways from operating more flights into Australia will go ahead, after the opposition's motion to establish the inquiry passed the Senate by one vote.
The inquiry was launched after it was revealed that Qantas had lobbied the federal government to block Qatar Airways from expanding its operations in the Australian market.
Sanjaya Senanayake is an Associate Professor at the Australian National University.
He spoke to the ABC.
"So the Qatar story is about Qatar Airways wanting to double its the number of flights it has into Australia. So an extra flight a day to Sydney, Melbourne and Brisbane. And the Transport Minister apparently declined that offer and I think the assistant treasurer said something about wanting Qantas, to see Qantas do well and make a good profit etcetera."
Professor Senanayake says not allowing those extra flights means passengers are paying more which affects tourism.
"We're also seeing 70 per cent of flights to Europe up and running with Qantas and Emirates, but there still are a lot of flights which aren't up and running. Which means there's a pressure on seats, and that flights are far more expensive than what they could have been. .. There's about a billion dollars that will be lost by reduced tourism and freight and all this is by supporting a company. Yes it's Australian, but it went private in 1995. And it's beholden to its shareholders, not to us. So I think I really think it would be nice maybe to let Qatar in and give us those extra flights and let the Australian citizens have some cheaper flights.”
The motion to form the inquiry was introduced by Nationals Senator Bridget McKenzie.
It passed by a narrow margin with 32 senators in favour and 31 opposed.
Senator McKenzie has accused the government of running what she calls a protection racket for Qantas.
"Minister, if all our major airlines except one and Labor states, competition experts and the tourism industry says 'let them fly', who is this government protecting when it claims the decision was in the national interest?"
The fresh inquiry comes as Prime Minister Anthony Albanese confirmed he had spoken to the Virgin Australia CEO ahead of the decision to block Qatar’s request, but not to Qantas executives.
Senator McKenzie says the government has pandered to Qantas on a range of issues, citing Prime Minister Anthony Albanese's relationship with former Qantas boss Alan Joyce, and Qantas' support for the Indigenous Voice to Parliament, as possible reasons why.
"Why have they doubled down? Is it because of Mr Albanese's personal and political strong relationship with not just Alan Joyce, but with Qantas as the flagship bearer for his Yes campaign? Why was aviation ruled out of the government's competition review? And why did they reject the application for Qatar Airways, which we know would have put downward pressure on prices?"
National Party Senator Matt Canavan says the Labor Party and the Greens nearly stopped the inquiry from going ahead.
He says the government is siding with big business over ordinary Australians.
"Why is the party still running a protection racket for Qantas when people across the country have been screwed by Qantas? But the Labor party seem to have very cosy relationships with big business, with Qantas, and don't seem to be on the side of the Australian consumer right now. Why didn't they vote for an inquiry? What have they got to hide here?"
The airline is experiencing turbulence on another front too.
The Transport Workers' Union is criticising Qantas for the disbanding of the core workforce through outsourcing across 38 distinct entities and labor hire intermediaries.
Workers are calling on the parliament to expedite legislative reforms aimed at closing the labor hire loopholes that Qantas has used.
These have resulted in the replacement of well-paying, stable employment positions, with lower-paid part-time, casual, and labour hires.
Labor Senator and former chief of the Transport Workers Union Tony Sheldon says the Qantas board also needs to be held to account for the actions of the company.
"They need to turn around say they're backing the Australian public, the backing Australian customers, and they're going to turn around and make sure there's a difference and a change to what's happening with regards this company's operation. ... The company should be held to account on every front."
Workplace Relations Minister Tony Burke says Qantas' use of the loophole was extensive.
"As employment Minister as workplace relations minister, I've been very conscious that when we talk about the labour hire loophole, most companies don't use it. But Qantas as a company has been using the labour hire loophole in a pretty extraordinary way. My objective is to make sure that people at Qantas are paid fairly."
To further complicate matters for the airline, the Australian Competition and Consumer Commission (ACCC) has launched Federal Court action claiming the troubled airline engaged in false, misleading or deceptive conduct after continuing to sell thousands of tickets that were already cancelled.
The consumer watchdog hopes Qantas will be dealt a record fine for a consumer law breach if its allegations about the airline's cancelled advertised tickets prove correct.
ACCC chair Gina Cass-Gottlieb would like to see the airline pay more than double the existing $125 million record penalty slapped on Volkswagen back in 2019.
With the airline facing so many challenges, Mr Joyce decided to make an early exit.
In a statement to the ASX, he said it has become clear to him the focus of Qantas needs to be on renewal.
Vanessa Hudson has assumed the role of Managing Director and Group Chief Executive as of today. [[6 September]].
She's the first woman to be at the helm of the airline.
