Key Factors
- A Senate committee is investigating the the price of residing pressures going through Australians.
- Senators questioned Qantas chief government Alan Joyce in public hearings on Monday.
- The airline reported a file revenue of $2.47 billion this yr, after dropping nearly $2 billion the earlier yr.
Qantas chief government Alan Joyce says journey for Australians could possibly be made extra reasonably priced with two adjustments to aviation coverage.
The outgoing head of Qantas was questioned by senators at an inquiry on Monday on value of residing pressures, amid criticism from some quarters over — a file for the airline
It was the primary time in nearly a decade the airline boss has appeared earlier than a parliamentary committee.
Qantas CEO Alan Joyce, pictured right here relaunching a path to New York earlier in 2023, spoke on the Choose Committee into the Price of Residing. Supply: Getty / James D. Morgan/for Qantas
Joyce used his opening statements to focus on the earnings of Australian airports.
“Our revenue this yr was 13 per cent,” Joyce mentioned.
“Sydney Airport’s revenue margin was round 40 per cent, that is a rare return.”
He mentioned elevated airport pricing would show a “main value strain” for the Qantas Group.
“The regulatory regime that governs the connection between airports and airways is not working,” he informed the listening to.
“Devoted pricing rules drafted to unravel this drawback have by no means been formally enshrined, and are usually ignored by airports.”
As the federal government prepares to launch its aviation white paper in 2024, Mr Joyce mentioned insurance policies had been wanted assist with environment friendly decision of economic disputes between airways and airports.
“Australia’s monopoly airports are a number of the most worthwhile on the planet and finally, it is the passenger who pays,” he mentioned.
He known as for a sustainable aviation gas (SAF) trade which would scale back emissions and be an enormous alternative for jobs and financial development.
“It will cut back the influence of massive swings in oil costs and and would assist bridge a major hole in Australia’s power independence,” he mentioned.
Sustainable aviation gas was the “most important device airways must decarbonise”.
Joyce denied one of many senators’ ideas primarily based on skilled evaluation that the price of airfares had elevated by 40 per cent since pre-COVID.
He mentioned the worth of worldwide flights had gone up 10 per cent (in inflation-adjusted phrases) and home flights 4 per cent.
The Choose Committee on Price of Residing which was established in September 2022 is trying into the price of residing pressures going through Australians.
