The notion that privatising large public companies like Qantas, Telstra, the CBA, Medibank and energy companies to crony capitalists was ever going to benefit the Australian public seems so deluded now, given how history has evolved.
Privatising Qantas has to be one of the most flagrant acts of self-harm committed by any Australian government.
Qantas systematically gouges customers, both Australians and visitors. It undercuts competition at every turn. And it leverages its clout with governments to limit competitor airlines’ flights to and from Australia.
Allan Joyce, the CEO of Qantas, is also a despised public figure.
Melbourne Airport CEO, Lorie Argus, is one of a number in the aviation industry calling for the modernisation of Australia’s bilateral air service agreements through an open-skies approach.
Open-skies agreements are government-to-government deals that aim to address protectionism in the airline industry by providing unlimited access.
“We believe there is a significant potential for improved access to Australia and Melbourne in particular through Asia-Pacific and the Middle East”, Argus said.
“The current framework adopts a ‘just-in-time’ approach to capacity decisions, but given the long lead times required to establish new services, having negotiations undertaken well in advance would provide airlines with certainty and help improve viability”.
“This would improve outcomes for passengers by encouraging international airlines to actively compete in our market to provide the best price, enhanced service and improved reliability for customers”, she said.
Argus’ comments come as Minister for Transport and Infrastructure Catherine King continues to attract criticism for refusing Qatar Airway’s application to double its flights to Australia, despite estimates it would have generated an additional $500 million in tourism revenue and thousands of jobs.
Not surprisingly, Qantas was the main opponent of Qatar Airway’s application.
King has not stated why Qatar was rejected, but she has stated that the additional flights were not in the “national interest” of Australia and would have resulted in fewer jobs for Australians.
Most of the tourism and aviation industries have questioned this argument, accusing the government of a lack of transparency.
The decision to block Qatar Airway’s application followed the revelation that Prime Minister Anthony Albanese’s 23 year-old son was granted membership to the exclusive Qantas Chairman’s Lounge, which entitles him to free flight upgrades and bottomless champagne.
“I’ve been good mates with Albo for some time”, Qantas chief Alan Joyce said when quizzed on the matter.
Albo and Joyce: Good mates
As The AFR’s Joe Aston noted last week, “there is only one credible quid pro quo between the two counterparties: politicians get Chairman’s Lounge with all its associated trappings and, in return, Qantas gets a legal protection racket”.
Leveraging governments to get what it wants is the Qantas business model.
The federal government should deregulate the passenger aviation market through an open-skies arrangement, and clip Qantas’ wings once and for all.
It will never happen, however. Our politicians are too busy sucking on Qantas’ teat enjoying undeclared freebies. That’s Australian crony capitalism for you.
