November 26, 2024

Emirates lifts capacity to Australia as rival Qatar remains stuck

Australia #Australia

“We are free marketeers, we have to be in our business. Access to Australia is in the hands of the federal government, it has nothing to do with us whatsoever, who they choose and let in and do what they do,” said Sir Tim, adding that European, Asian and United States carriers had all been able to access additional flights to Australia under international rules.

“For reasons best known to the Australian government, one carrier is kept at a constant [number of flights], but do I see a problem? Carriers will always go with the market,” Sir Tim told AFR Weekend.

The fracas over the additional Qatar flights – and the competition they would create for Qantas on lucrative routes into Europe – has not only weighed on Prime Minister Anthony Albanese, but also on the Australian carrier, raising questions about its influence over policymaking.

Under pressure on several fronts, including poor service to customers, Qantas replaced its chief executive earlier than expected last year, with Alan Joyce stepping down in September, two months ahead of schedule.

“I feel sorry for [Alan Joyce] personally because I’m not sure he deserved what he got there, after his history of bringing Qantas back up,” Sir Tim said.

“I remember the days of Geoff Dixon and his predecessors and how difficult it was to get access to Australia because Qantas was so predeterminant in their thinking – it was basically ‘keep everybody out’.”

Qantas did not oppose Turkish Airlines’ request to double a bilateral air services agreement, which was ultimately quintupled by the federal government. Transport Minister Catherine King has offered several explanations for the government’s decision to block Qatar, even though Emirates and Etihad are both yet to reach their capacity levels.

Emirates has announced that it will be using larger aircraft on its second daily flight between Dubai and Brisbane from October, and adding a second daily service between Dubai and Perth from December. By December, Emirates’ weekly capacity to Australia will increase by an additional 6900 seats, as well as adding freight capacity to support exporters.

The increases, as well as Emirates’ previously announced return to Adelaide this summer, will take the airline back to its operating levels before the COVID-19 pandemic, capping off two years during which tight supply of seats have pushed airfares to Europe to record levels.

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