Qantas Rivals Seize on Woes to Call for End of Market Dominance

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Qantas Airways Ltd.’s fall from grace has prompted rival airlines, airport operators and travel agents to call for swift structural reform to open the market to more carriers and rein in the giant.

In just the past month, Qantas has been hit by a class action over its retention of Covid-era travel credits and sued by Australia’s competition regulator for allegedly selling seats on already canceled flights. Amid the outcry, then-Chief Executive Officer Alan Joyce brought forward his retirement.

“There’s an opportunity for competition to be grasped,” said Tim Jordan, CEO of new low-cost airline Bonza. “Now is the time to do it.” Flight slots at Sydney airport that aren’t being used properly by Qantas should be farmed out to other airlines, said Graham Turner, CEO of Flight Centre Travel Group Ltd., Australia’s biggest travel agency. The government has nothing to lose by pushing through aviation sector reform right away.

Joyce’s surprise early departure was the culmination of multiple crises at Qantas since Covid travel restrictions eased. Flight cancellations and delays soared in 2022 as the airline ran short of planes and staff. Angry passengers blamed Joyce — the face of the airline for 15 years — and his Sydney home was pelted with eggs and toilet paper.

After expanding in 2020, Brisbane Airport could almost double its takeoff and landings at peak times, he said. “That’s another reason to bring in new airlines, because that will help us fill that new runway.”

 

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