Airlines

Blocking Qatar Airways Flights by Australian Government Might Incur Annual Costs of Up to $500 Million

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According to industry figures, preventing Middle Eastern airline Qatar Airways from expanding its aircraft capacity would cost the Australian economy over $500 million in lost yearly tourism revenue. However, Transport Minister Catherine King told the legislature that this decision was made to preserve domestic job prospects.

The Australian Financial Review obtained figures from sources in the airline industry that show a cost of between $540 million and $788 million yearly in additional economic activity, based on the assumption that roughly 50% of the seats are sold to foreign tourists.

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Ms. King, who wasn’t previously said why she decided to stop Qatar Airways from increasing flights to Melbourne and Sydney, told the parliament on Wednesday that she took action to safeguard the interests of the country.

“We only sign up to agreements that benefit our national interest, in all of its broad complexity,” she added. “That includes making sure we have an aviation sector, through the recovery, that employs Australian workers.”

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We will always take into account the need to ensure that there are long-term, well-paying, secure jobs for Australians in the aviation sector when we are making these decisions, the government has determined that granting the Qatar Civil Aviation Authority’s request for additional services is not in our national interest.

As part of Qatar Airways‘ application for bilateral flying rights, the Federal Government asked for Qantas’ advice. According to The Australian, Qantas resisted the offer on the grounds that it would result in the loss of Australian jobs.

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Airlines

Sanctions & Engine Issues Ground Half of Russia’s A320neo fleet

Russia’s aviation sector, already strained by Western sanctions, faces another setback as nearly half of its Airbus A320neo family aircraft are grounded due to unresolved engine issues.

This development highlights the growing challenges for russia commercial aircraft in maintaining their fleets under the weight of global restrictions and limited access to spare parts.

Out of the 66 Airbus A320neo and A321neo jets in Russia, 34 are now out of service, according to the Kommersant business newspaper. These planes are powered by engines manufactured by Pratt & Whitney, a subsidiary of RTX Corporation.

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The engines are affected by a previously identified defect in the metal used for certain parts, prompting accelerated inspections and maintenance.

Sanctions have compounded the issue, blocking the supply of essential components from major manufacturers like Boeing and Airbus. Without proper maintenance, experts warn that these aircraft may face decommissioning as early as 2026.

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Airlines like S7, which operates a significant portion of these grounded jets, plan to conserve the engines for future use during peak travel seasons. However, reports suggest that over 20 of S7’s Airbus planes have engines that have already reached the end of their operational lifespan. Recently, russia seeks assistance from kazakhstan’s airlines to bolster its domestic flights.

While some A320neo and A321neo planes in Russia are equipped with French-made LEAP engines, which are seen as less problematic, the challenges remain daunting.

The situation underscores the long-term impact of sanctions on Russia’s aviation sector and the increasing difficulties in keeping its modern fleets operational.