The assistant treasurer says it's 'entirely uncontroversial' to say that Qantas must remain profitable, as the government weathers criticism over a decision to block Qatar from adding more flights, potentially reducing airfares.
Assistant Treasurer Stephen Jones told the Australian Financial Review on Monday that Qatar was blocked because cheaper fares could be "unsustainable for the existing Australian-based carrier", and the government wanted to ensure Qantas' viability.
Shadow Transport Minister Bridget McKenzie has accused the government of "running protection" for Qantas, saying the government was deliberately keeping the cost of flying "artificially high" during a cost of living crisis."I made the completely uncontroversial statement that the Australian government wants to ensure our airline industry is viable and competitive, that it's delivering good services to customers," he said.
Qantas has lobbied the government not to allow Qatar to add more flights, saying it would "distort" the market. Mr Jones reasserted that airlines must be profitable, because "we have seen in our history what happens when they are not".
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