In July, the Labor government rejected a proposal by Qatar Airways to add an extra 21 Australian routes – a bid that might have reduced airfares and boosted the tourism industry by $788 million.
Under questioning about whether he met with Qantas CEO Alan Joyce, Albanese told parliament he had one “extensive conversation” about the Qatar Airways deal, but it was not with any representative from Qantas.
He said opposition questions about the arrangement came from “a complete failure to understand the way the international aviation system works”.
“We have the most open aviation market in the world, bar none,” he said.
Albanese noted when he was a minister in 2009 he doubled Qatar’s access from seven to 14 flights.
Rejection of Qatar Airways a ‘sweetheart deal’ for Qantas
Nationals Senate leader Bridget McKenzie is pushing for an inquiry into the decision.
“It’s very easy to assume that this government is continuing to run a protection racket for the most complained about company in our country,” Senator McKenzie said.
Opposition Leader Peter Dutton said there was a “murkiness” around the government’s rejection of Qatar Airways, describing it as a “sweetheart deal” with Qantas.
A Qantas spokesperson said the company would review allegations made by the consumer watchdog, but acknowledged its standards “fell well short” as the airline emerged from the COVID-19 pandemic.
“The ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts,” the spokesperson said.