Aviation news international – US Supreme Court Justice Louis Brandeis once said sunlight is the best of disinfectants.<\/p>\n
Qantas is set to face its share of sunlight as a Senate inquiry gets under way and the early exit of boss Alan Joyce fails to stymie concerns about the aviation sector.<\/p>\n
Justice Brandeis was also a leading critic of monopoly corporations, believing they harmed workers and business innovation.<\/p>\n
He called it the \u201ccurse of bigness\u201d.<\/p>\n
RMIT associate professor of finance Angel Zhong says Australia\u2019s airline industry \u201cresembles a cosy oligopoly, where a select few airlines wield significant influence over the market\u201d.<\/p>\n
At a domestic level, Qantas and Virgin represent 95.1 per cent of the market.<\/p>\n
In terms of international flights, while there are 100 air services agreements, Qantas accounts for 26.1 per cent of the market and Virgin Australia 6.7 per cent.<\/p>\n
There are concerns the federal government is being anti-competitive with its decision to block Qatar Airways from accessing 28 extra flights per week to Sydney, Melbourne and Brisbane on top of its existing 28 weekly services.<\/p>\n
Transport Minister Catherine King insists it was in the national interest and in line with previous governments.<\/p>\n
\u201cThe decision to block Qatar Airways\u2019 entry under the grounds of national interest would hold water if Qantas were on the brink of collapse, thus necessitating the blockade as a bailout measure,\u201d Dr Zhong said.<\/p>\n
\u201cHowever, there is a glaring absence of information explaining how the blockade safeguards national interest, especially when it only appears to impede Qantas\u2019 competition and increase flying costs for the public.\u201d<\/p>\n
Even before the Qatar Airways decision, consumers were grumpy with the Flying Kangaroo\u2019s handling of ticket credits.<\/p>\n
Qantas had given passengers a deadline to claim the credits, but decided to keep it open indefinitely after a huge backlash.<\/p>\n
A 50 per cent flight delay rate in 2022 has done little to lift confidence and the company\u2019s share price has slumped in recent months.<\/p>\n
Dr Zhong says accountability and transparency will be crucial for the airline\u2019s future.<\/p>\n
The appointment of CEO Vanessa Hudson offers a chance for a reset, greater engagement with customers and a focus on transparency.<\/p>\n
\u201cThe company has a unique opportunity to rebuild trust and revitalise its reputation from a clean slate,\u201d Dr Zhong said.<\/p>\n
One winning trajectory for the airline is to focus on what finance academic My Nguyen describes as balancing profitability with ethical responsibilities to workers, customers, and the public.<\/p>\n
\u201cOne possible way to design such a strategy is to use the triple bottom line framework, focusing on profit, people and the planet \u2013 this can urge businesses to consider social and environmental impacts alongside financial gains,\u201d Dr Nguyen said.<\/p>\n
\u201cLooking at their recent actions, it\u2019s not hard to see how they have focused only on profits.\u201d<\/p>\n
In late-2022 the minister in charge of competition, Andrew Leigh, gave a speech in which he talked about the \u201cNew Brandeis Movement\u201d.<\/p>\n
The thrust of the movement, says Dr Leigh, is excessive market concentration can harm consumers and dampen dynamism.<\/p>\n
Dr Leigh spoke in more detail about the aviation sector \u2013 which will be reviewed through a green and white paper process \u2013 at the National Press Club in August.<\/p>\n
\u201cI remember as a kid, the people who flew overseas to take a holiday were the very rich,\u201d he said.<\/p>\n
\u201cWe\u2019ve seen a change now where many middle-class Australian families can afford an overseas holiday. That\u2019s partly income gains. It\u2019s partly also because the real price of airfares has come down.<\/p>\n
\u201cI look to Europe with its range of low-cost carriers and see what looks like an even more competitive ecosystem.\u201d<\/p>\n
Senators will also weigh in at a parliamentary inquiry.<\/p>\n
Nationals Senate leader Bridget McKenzie wants to know why Qatar Airways was blocked from providing additional air services, accusing the government of \u201cstanding in the way of cheaper airfares\u201d.<\/p>\n
The inquiry will report back to the Senate on October 9 \u2013 just ahead of holiday makers seeking some extra sunlight after a long winter of discontent.<\/p>\n