Airlines

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

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

Federal Court Imposes $100M Fine on Qantas for “Ghost Flights” Scandal

In a major ruling, the Federal Court has confirmed a hefty A$100 million penalty against Qantas for its involvement in the “ghost flights” scandal. As reported by FlightGlobal.

The court found that Qantas misled consumers by offering and selling tickets for flights that the airline had already decided to cancel. Adding to the controversy, Qantas failed to promptly notify ticket holders about these cancellations.

The penalty follows Qantas’ admission of violating the Australian Consumer Law (ACL). The airline agreed with the Australian Competition and Consumer Commission (ACCC) on the penalty amount, aiming to deter Qantas and other businesses from similar breaches in the future.

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The ACCC emphasized that this substantial fine sends a clear message: misleading customers will lead to serious consequences, regardless of a company’s size. In addition to the penalty, Qantas has committed to paying approximately A$20 million to affected passengers who unknowingly purchased tickets for canceled flights.

This compensation comes on top of any refunds or alternative flight arrangements already provided. ACCC Chair Gina Cass-Gottlieb praised the penalty, underscoring the importance of robust compliance programs red energy qantas in large corporations like Qantas.

She pointed out that Qantas has since made changes to its operating and scheduling procedures to prevent similar issues in the future.