A leading industry group has warned the Albanese government’s decision to block Qatar Airways from running more flights in Australia could lead to “grave” consequences.
The Australian Chamber of Commerce and Industry’s chief executive John Hart wrote to Transport Minister Catherine King warning of serious financial repercussions for the tourism sector as a result of the controversial decision.
He added the limits on Qatar would also hinder fare competitiveness, at a time when the Australian competition watchdog has warned capacity remains too low when demand for international travel remains high. The Middle Eastern airline was seeking to operate an extra 21 flights a week into Brisbane, Sydney and Melbourne in a bid launched last year and ultimately rejected by the government last month.
Mr Sims urged the government to explain its decision further, as the bid would have aided capacity and helped prices shift downwards. “Qatar is in the unique position in the context of a constrained global supply of widebody aircraft, to be able to quickly make available four additional services a day to Australia,” she said.Ms Hrdlicka said the airline was looking forward to “working with the federal government and other key stakeholders to find a way to understand and resolve the underlying issues”.
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