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CBASA Senate Inquiry Update: 9/10/23

First via the Oz:

Discussions to be held with Qatar over flight block, says department



A federal government department has taken the first steps towards overturning the Qatar Airways’ decision, revealing they will hold discussions about the current air services agreement.

The department of infrastructure, transport, regional development, communications and the arts received a request from the Qatar Civil Aviation Authority (QCAA) in late August to review the decision, made by Transport Minister Catherine King.

Qatar had sought an additional 28 flights a week into Sydney, Melbourne, Brisbane and Perth, effectively doubling its capacity into Australia but was refused without explanation.

In a response to questions from The Australian, a department spokesperson said “they had responded to the QCAA indicating we will consider their request for consultations in accordance with the current Australia-Qatar air services agreement”.



“The department will be contacting the Qatar CAA shortly to arrange a mutually convenient time for these discussions,” said the spokesperson.

It’s understood such consultations did not require the sign off from the Minister.

Last week a Senate inquiry into bilateral air rights heard the department provided the paperwork for negotiations to commence with Qatar in January, but it never advanced beyond Ms King’s office.

Virgin Australia CEO Jayne Hrdlicka told the inquiry Ms King had indicated she was about to give the green light for negotiations to start when the pair met on January 20.

At the same meeting, Ms Hrdlicka said Ms King shared that then Qantas CEO Alan Joyce was not happy to hear negotiations were imminent, and wanted to meet with her.

After that meeting, the negotiation mandate was not returned to the department with public servants hearing nothing further from Ms King until they were informed on July 10 the Qatar request had been denied.

Qatar Airways’ officials confirmed no negotiations ever took place, nor were they provided with a reason for the Australian government’s refusal.

Mr Joyce has been out of the country since bringing forward his retirement from Qantas and is yet to give evidence to the inquiry.

It was clear Qantas remained strongly opposed to Qatar Airways being granted more flights, after warning the government a review of the decision would be highly abnormal.

In its submission to the Senate inquiry, Qantas said “airlines and other parties do not have ‘rights’ that can be properly appealed in this context”.

“Granting them would put Australia out of step with other jurisdictions in an environment

where reciprocity is critical,” the submission said.

“In analogous fields such as trade or taxation, there are no appeal provisions in respect of other government-to-government agreements.”

Qatar Airways’ officials told the inquiry the airline could be operating the additional services by Christmas, if Ms King’s decision was overturned.

Other evidence presented to the Senate committee suggested the doubling of Qatar Airways’ capacity into Australia could lower airfares to Europe by 7 to 10 per cent, and support hundreds of extra jobs.

A report on the inquiry was expected to be delivered on Monday October 9, but committee chair Bridget McKenzie remained hopeful of hearing from Mr Joyce and Ms King.

Senator McKenzie said while they were pleased with the results of the inquiry and five public hearings, there were “still questions to be answered”.

Next the CBASA Senate Inquiry Report: Ref - https://www.aph.gov.au/Parliamentary_Bus...asa/Report

Recommendations

Recommendation 1

4.27 The committee recommends that the Australian Government immediately
review its decision not to increase capacity under Australia's bilateral air
services agreement with Qatar.

Recommendation 2

4.40 The committee recommends that when making decisions relating to bilateral
air service agreements, the Australian Government have regard to a cost
benefit analysis, consult widely with key stakeholders including the
Australian Competition and Consumer Commission, and publish a statement
of reasons for decisions taken.

Recommendation 3

4.48 The committee recommends that the Australian Government review reform
options to strengthen competition in the domestic aviation industry,
including potential divestiture powers to remedy any misuse of market
power.

Recommendation 4

4.51 The committee recommends that in order to reinstate monitoring of the airline
industry by the Australian Competition and Consumer Commission, the
Senate urgently pass the Competition and Consumer Amendment
(Continuing ACCC Monitoring of Domestic Airline Competition) Bill 2023.

Recommendation 5

4.54 The committee recommends that the Australian Government direct the
Australian Competition and Consumer Committee to conduct an inquiry into
potential anti-competitive behaviour in the domestic aviation market.

Recommendation 6

4.65 The committee recommends that the Australian Government develop and
implement consumer protection reforms as soon as reasonably practicable to
address significant delays, cancellations, lost baggage and devaluation of
loyalty programs.

Recommendation 7

4.71 The committee recommends that the Australian Government urgently
respond to the Review of the Sydney Airport Demand Management Scheme
x including the Mr Peter Harris AO recommendations to improve airport slot
management and strengthen the 'use it or lose it' rule.

Recommendation 8

4.76 The committee recommends that the Australian Government consider
introducing limited cabotage for foreign airlines to regional airports.

Recommendation 9

4.85 The committee recommends that the Senate adopt the following resolution:
That—

(a) the Select Committee on Commonwealth Bilateral Air Service
Agreements, appointed by resolution of the Senate on 5 September 2023,
as amended on 7 September 2023, be reappointed on the same terms,
except as otherwise provided by this resolution, so that the committee
may:

(i) receive evidence at a public hearing from:

(1) witnesses who were unavailable prior to the committee's original
reporting date, including Mr Alan Joyce AC;
(2) government affairs representatives from Qantas, noting that Qantas'
answers to questions on notice from senators were unsatisfactory,

(ii) report on any matters arising relevant to the committee's terms of
reference; and

(b) the committee or any subcommittee have the power to consider and
make use of the evidence and records of the select committee appointed
on 5 September 2023;
© senators who were members or participating members of the previous
select committee are appointed to the new committee; and
(d) the committee report by 29 November 2023.

Recommendation 10

4.92 The committee recommends that the Senate request the House of
Representatives to require the attendance of the Minister for Infrastructure,
Transport, Regional Development and Local Government,
the Hon Catherine King MP, before the re-established Select Committee on
Commonwealth Bilateral Air Service Agreements to provide public evidence.

MTF...P2