The Senate committee examining the Commonwealth Bilateral Air Service Agreements has delivered its final report this afternoon, finding “clear evidence” of the “aggressive use of market power by Qantas” over the federal government’s decision to reject additional flights by Qatar Airways.
The Senate committee was established last month in response to the federal government’s decision to reject a request for Qatar Airways that would see 28 additional weekly flights added to their schedule, with Transport Minister Catherine King saying the decision was made in the “national interest”.
The committee has made 10 recommendations, including that the competition watchdog reinstate its monitoring of domestic airlines, and the federal government “immediately review” the decision.
Committee chair and Nationals senator Bridget McKenzie said the report contained strong recommendations that would ultimately benefit Australians with cheaper airfares.
“At a time of a cost-of-living crisis in Australia the government has made decisions that have protected Qantas’ market share and kept the cost of airfares higher for Australian families and exporters, and they have delayed making critical decisions to improve the reliability of domestic travel especially at Sydney Airport,” Senator McKenzie said.
“The committee heard evidence that Australians could have been enjoying cheaper flights to Europe and the Middle East as early as April this year had the government approved additional Qatar Airways flights, and that Turkish Airlines had planned to offer additional flights in time for families to reunite overseas this Christmas.
“Clear evidence was provided of the aggressive use of market power by Qantas and the committee has called for reinstatement of Australian Competition and Consumer Commission monitoring of the domestic airline industry and for the competition watchdog to inquire into anti-competitive behaviour in the sector.”
