The Albanese Government has excluded the aviation sector from its broader competition review, despite recent controversy over blocking Qatar Airways from adding 28 extra weekly flights to Australia.
Andrew Leigh, the minister responsible for competition, said that the review would focus on "issues that cut across government" and that aviation matters would be examined in a separate "aviation green paper".
The decision to block Qatar Airways has been divisive, stirring debate over the high airfares and lack of competition within the industry. The government justified its decision as "in the national interest", claiming it was protecting local jobs and considering human rights and carbon emissions.
ANZ CEO Shayne Elliott, however, questioned the move, saying it seemed at odds with a market economy and competition. Virgin Australia's CEO Jayne Hrdlicka argued that allowing Qatar’s new services would have cut overseas fares by up to 40%.
Prime Minister Anthony Albanese distanced himself from the decision to block Qatar Airways, stating that Transport Minister Catherine King was responsible.
Opposition members and industry insiders allege that King's department had recommended approval, only to be overruled by higher-ups.
Qantas CEO Alan Joyce, who refused to disclose details of his conversations with government officials, had previously argued that additional flights from Qatar would "distort the market".
The exclusion of the aviation sector from the competition review comes at a time when questions are raised about market dynamics, especially after Qantas reported 18% profit margins on domestic routes last week.
Critics, including Virgin Australia — a loser from the government’s decision to block its partner airline Qatar — argue that more competition is needed to drive down airfares and enhance customer experiences.
In related hearings, both Virgin and Qantas sparred over the potential impact of adding Qatar’s flights, but neither could offer concrete data on how it would affect ticket prices.
Senator David Pocock called for the Federal Government to foster competition across the broader economy, not just in aviation but also in banking and supermarkets.