An expansion of Qatar Airways operations in Australia could have driven fares down by as much as 40 per cent, according to the head of Virgin Australia.
The Albanese government this week confirmed the decision was made in part to protect Qantas‘ profitability.
Today it was quizzed as to why travellers shouldn’t have more choice when booking a flight.
“We certainly stand by the decision and I don’t accept the premise underpinning the question,” government minister Chris Bowen said.
Virgin Australia CEO Jayne Hrdlicka told ABC Radio National allowing Qatar Airways to increase the number of flights into Australia would lower airfares and boost tourism.
“Airfares are about 50 per cent higher today than they were pre-COVID,” Hrdlicka said.
“The statistics say two-thirds of the seats that were flying in and out of Australia pre-COVID are back and one-third of those seats are not yet back.
“And so if we get those seats back, airfares will be as low as they possibly could be.
“I guess that would be a reduction of at least a third, maybe 40 per cent reduction in airfares.”
Qatar Airways is a strategic partner with Virgin Australia.
Competition is not the only crosswind for Qantas, with unpaid travel credits remaining a national talking point.
Last week the flag carrier said it owed customers $370 million for flights cancelled during COVID, but this week it was revealed at least another $100 million was owed to Jetstar customers and another $50 in overseas flight credits.
The airline maintains if those credits aren’t used by the end of this year the window closes and the money will be theirs.
Prime Minister Anthony Albanese told reporters in Adelaide on Tuesday the money should go back to customers.
“I think that when people have booked flights and paid money they should either get access to another flight at another time or they should get their money back,” he said.
Labor Senator Tony Sheldon asked Qantas Airways CEO Alan Joyce to explain the reasoning behind a deadline for Qantas customers to use the flight credits at a senate committee on Monday.
“You have put an arbitrary deadline of December this year when people lose that money and the money stays in the pockets of Qantas and Jetstar,” he said.
“You’re seriously telling the Australian public you don’t know how many tens of millions of dollars are involved.”
Joyce said since March 2020 $3 billion in refunds had been granted.
