Former Morrison government transport minister Michael McCormack had competition concerns at the front of his mind in 2018 when he set limits on Qatar Airways expanding in Australia.
But there are two key differences this time around: Qantas, a big beneficiary of the decision, delivered a record $2.47 billion profit last week, driven by profits from international routes, while five years ago it was returning to profit after a destructive domestic price war. The other difference is Virgin, Qantas’s only real rival in domestic aviation, is heading towards a float that appears to have stalled dead in its tracks.
The arguments about Qatar dumping capacity could be levelled against any state-owned airline, and there are many, including those from China, where Australia does not limit flights. Suggestions by Labor ministers that Qatar can fly as many planes as it likes to Adelaide or Cairns, tend to ignore the fact that Qantas doesn’t fly internationally to or from these places because the commercial case doesn’t stack up. At the same time as arguing Qatar is not an economically rational player, the government is somehow suggesting it should become one by flying to markets that Qantas won’t service.