Report of Bilateral Air Services Senate Select Committee

• Immediately Review the Qatar Airways decision
• Immediately Reinstate ACCC monitoring of domestic airlines
• Urgently respond to Harris Review into Sydney Airport slots
• Strengthen competition in domestic aviation, including investigating divestiture powers
• Implement consumer protection reforms for travellers
• Seek to extend the Select Committee to hear from Alan Joyce AC and Minister Catherine King

The Albanese Government should immediately review the decision to reject additional flights from Qatar Airways, reinstate monitoring of the domestic airline industry by the competition watchdog, respond to the Harris Review of Sydney Airport slots to help improve reliability, increase choice, and reduce the cost of airfares, are recommendations of the Senate Select Committee inquiry on Commonwealth Bilateral Air Service Agreements.

Shadow Minister for Infrastructure, Transport and Regional Development and Chair of the Select Committee, Senator Bridget McKenzie said the inquiry has made strong recommendations for immediate actions the government could take to cut the cost of airfares and reduce flight cancellations and delays.

“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.

The committee received 147 written submissions, including over 100 from individuals who raised issues with the Qantas frequent flyer program, including the devaluing of points and lack of available services.

“As a result of this inquiry, Qantas have offered to work to resolve the concerns of those customers, and the committee has recommended the Government develop strong consumer protection measures to address the devaluation of loyalty programs as well as lost baggage, cancellations and significant flight delays.

“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.

Senator McKenzie said the evidence supports the conclusion that the Government rejected Qatar Airways request because of interventions by former Qantas CEO Alan Joyce, who was also responsible for Qantas supporting the Prime Minister’s referendum on the Voice, at shareholders and customers expense.

“Unfortunately, the Government sought to prevent the committee from fully investigating the reasons why additional Qatar Airways flights were rejected by refusing to release documents and placing a gag on the infrastructure and foreign affairs departments.

“Departmental answers to questions taken on notice were not provided until as late as Friday afternoon, in a brazen attempt by the Albanese Government to prevent the committee from reporting by the 9 October 2023 deadline,” Senator McKenzie said.

Senator McKenzie said the committee has recommended the Senate vote to extend the Select Committee to enable it to hear from Mr Alan Joyce AC, who was unable to appear before the inquiry due to being overseas.

The committee will also seek to have the Parliament direct Transport Minister, Catherine King appear before the extended inquiry. Minister King failed to formally respond to the committee’s request for her to appear, despite telling media she would not front up.

Report Recommendations

1. Government immediately review Qatar Airways decision
2. Government have regard to cost benefit analysis, consult widely and publish a statement of reasons of decisions on bilateral air services agreements.
3. Government review reform options to strengthen competition in the domestic aviation industry, including potential divestiture powers to remedy any misuse of market power.
4. Government to reinstate Australian Competition and Consumer Commission monitoring of the domestic airline industry.
5. Government direct the Australian Competition and Consumer Commission to conduct an inquiry into anti-competitive behaviour in the domestic aviation market.
6. Government develop and implement consumer protection reforms to address significant delays, cancellations, lost baggage and devaluation of loyalty programs.
7. Government to urgently respond to the Review of the Sydney Airport Demand Management Scheme (Harris Review) .
8. Government consider introducing limited cabotage to regional airports.
9. Committee recommends the Senate extend the Select Committee to receive evidence from Mr Alan Joyce AC and from Qantas government affairs representatives, noting that Qantas’ answers to questions on notice were unsatisfactory