We would have cut airfares, brought more tourists: Qatar reveals plans for extra flights
Australian airfares would have become cheaper, and tourism would have received a boost, had Qatar Airways been granted its request for additional flights, a parliamentary inquiry has been told.
Airline Intelligence and Research chief executive Tony Webber told a hearing on Tuesday the extra services would have led to “favourable effects”.
“There will be a material reduction in airfares … somewhere between seven per cent and 10 per cent,” he told a Senate select committee.
Dr Webber said there would have been an improvement in inbound tourism, largely from Europe, that could have been worth up to $1 billion.
“There is a material amount of market dominance from Qantas,” he said.
The former chief economist of Qantas described the airline as an “exceptionally aggressive competitor”.
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“If a new carrier encroaches on its routes, on its market share, then it will aggressively respond,” Dr Webber said.
He said the only commercially viable routes for Qatar after the pandemic were larger markets, including Sydney, Melbourne and Brisbane.
Representatives from Qatar Airways and Qantas will not be facing Tuesday’s hearing, but have been invited to give evidence.
Transport Minister Catherine King has come under fire for her decision to reject Qatar Airways’ bid to double the 28 weekly services it currently offers in Australia, after being lobbied by Qantas.
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Critics claim the move shields Qantas from competition and allows the airline to inflate fares, but Ms King has maintained the decision was made in the national interest.
Opposition transport spokeswoman Bridget McKenzie said it was the equivalent of an economic sanction.
“It’s actually impacted our economy and it’s impacted Qatar Airways’ economic future,” she told ABC Radio on Tuesday.
Senator McKenzie has also accused the government of having a cosy relationship with Qantas and suggested the airline’s support of the ‘yes’ campaign for the October referendum could have been done to bolster its political sway with the government.
The hearings will focus on consumer concerns and issues at Sydney Airport after a June report from the consumer watchdog alleged Qantas had cancelled flights to keep take-off and landing slots at the airport.
Qantas has faced a recent storm of PR disasters, marked by a Senate grilling on its $2.47 billion profit during a cost-of-living crisis, and a potential $250 million fine from the consumer watchdog.
The airline lost a High Court appeal, which found it had illegally sacked almost 1700 workers during the COVID-19 pandemic.
The committee will hold three more public hearings in Perth, Brisbane and Canberra and will report back by October 9.
