There is no doubt that Australian airline Qantas has lost some of its shine recently.
Events in the recent past include the departure of CEO Alan Joyce, pocketing a “golden handshake” which is said to total $14 million; the new CEO apologising for the poorer performance of her airline; and the scandal of selling tickets for flights that Qantas knew had been cancelled.
To make things worse, there is a report circulating about Qantas taking advantage of other airlines by its dubious use of “slot management” for departure and landing. But that’s another story.
The one which has raised the most ire across the board (at least in the “official” media) is the suspected participation of Qantas in the refusal to allow the Middle Eastern airline Qatar to fly extra services to Australia.
That dispute is still continuing, having been a feature of the Senate inquiry into Qantas.
Most of the outcry has been about passenger traffic, with critics estimating that the proposed extra passenger traffic would have been worth at least $700 million a year to the economy. Ironically, it is said that Qatar Airways was still flying Australians home when others had walked away during the Covid epidemic.
But, even if it has received less publicity, spokesmen for freight – and, in particular, agricultural freight – have made the point also.
This is especially so when the trade in meat is considered, Asia and the Middle East have been the most typical markets for high priced meat exports by air. As of 2019, the period before the pandemic, premium quality beef and lamb exports by air were worth $1 billion. According to the Australian Meat Industry Council, chilled boxed meat shot up from $1.50 to average about $7 a kg due to the Covid pandemic. This has remained costly, ranging from $3.50 to $5 a kilo.
Qatar Airlines had planned for up to 28 extra weekly Australian services, which would have freed up significant space in the cargo holds of those aircraft. It might have freed up additional opportunities to service Arabian Gulf states. Increasingly, it would have triggered welcome price competition in air freight.
Among the trade and business players who were partly responsible for Qatar flying to Australia in the first place was the sheepmeat exporter Roger Fletcher. He commented that they have sent lots of chilled product by air to Arab countries and Europe, especially when that meat is in demand for festivals at certain times of the year. These markets have dropped away with Australian meat prices at recent record highs.
In the agricultural field, it is not only meat that feels the pinch. The Australian Horticultural Exporters and Importers Association spokeswoman said that fruit and vegetable air freight was used by a wide spectrum of exporters. This was really important for soft, premium fruits such as cherries, blueberries, and stone fruit. The Middle East air route was still very expensive for these exporters.
One of the first tasks for the new CEO of Qantas, presumably, should be to get to the bottom of the federal government’s confusing excuses for blocking the planned extra Qatar flights into Australia.
This article appeared in The Buloke Times, 6 October 2023.
