The federal government’s decision to block Qatar Airways from almost doubling its flights to Australia will be scrutinised by a Senate inquiry, amid accusations from the opposition that Labor is running a “protection racket” for Qantas.
The fresh inquiry came as the prime minister, Anthony Albanese, confirmed he had spoken to Virgin Australia ahead of the decision to block Qatar’s request – but not to Qantas executives.
Albanese and his ministers have faced escalating pressure in recent days from the opposition and crossbenchers to provide further detail about the ruling.
The push by the Nationals senator Bridget McKenzie to put the controversial decision under the microscope passed the Senate by one vote after a dramatic recount on Tuesday afternoon.
Transport minister Catherine King has been defending the decision she made in July to reject the gulf carrier’s request to fly extra services into capital cities, saying it was made in the national interest.
Qatar Airways had wanted to fly an extra 21 services into Australia’s major airports, beyond the 28 flights a week it currently operates under existing bilateral air rights.
The Senate inquiry will now investigate all federal government decisions relating to commonwealth bilateral air service agreements received in the past 12 months after its scope was broadened beyond the Qatar Airways decision.
It will look at the impacts those decisions have had on the cost of living, the tourism and hospitality sectors and competition in the aviation sector.
“The Senate will now hold a special inquiry into why the prime minister and his government is standing in the way of cheaper air fares,” McKenzie said.
“This is a win for everyday Australians who want more competition and lower air fares in our aviation sector.”
After the Greens sided with the government in the Senate, the Coalition had required the votes of all remaining crossbench senators.
Independent senators David Pocock, Jacqui Lambie and Tammy Tyrrell sat with the opposition, along with One Nation senators Pauline Hanson and Malcolm Roberts, and the United Australia party’s Ralph Babet.
A last-minute amendment to McKenzie’s motion provided two extra committee spots, including the role of deputy chair, for independent senators.
The committee will present its final report in October.
In question time on Tuesday, Albanese was asked whether he had any conversations with the CEO or senior executives of Virgin Australia regarding the Qatar application prior to the decision being made.
Albanese gave a one word answer: “Yes.”
King said the number of flights Qatar Airways had asked for was “unprecedented” and inconsistent with the government’s “slow, incremental approach”.
“I know that there are some businesses and some airlines which would have liked to see me make a different decision, particularly those who have significant commercial interests at stake,” King said.
“I’ve not based this decision on any one company, or any one person’s commercial interests, but on the national interest.”
Virgin Australia, who counts Qatar Airways as its partner airline, has been critical of the decision, with chief executive Jayne Hrdlicka saying she had been unable to secure meetings with the government to discuss the topic.
Albanese, however, ruled out having done the same with the CEO or senior executives of Qantas ahead of the July decision.
The outgoing Qantas boss Alan Joyce, who brought forward his retirement date early on Tuesday amid intense scrutiny, has been vocal in his opposition against additional Qatar flights.
At a Senate inquiry in August, Joyce said the flights “would cause distortion” and that air fares would come down “quite considerably” in the next year as other carriers increase their capacity.
But the Coalition and the Greens have called into question the federal government’s decision, and Albanese’s personal relationship with Joyce, demanding further answers.
“It is disappointing that over seven weeks the government has given seven different, sometimes conflicting, excuses as to the minister’s decision,” McKenzie said.
“What we’ve seen in question time this week is more obfuscation by the prime minister and his ministers.”
A spokesperson for Pocock said he agreed the government’s responses so far had been “inconsistent and unclear”.
“Senator Pocock wants to see more competition in Australia across the board, including in the aviation market to deliver savings to Australians,” they said.
“He also believes there should be greater transparency in government decision making. The accounts the government has given to date are both inconsistent and unclear.”
