Turner,who founded the $4.7 billion travel agency business,said the decision was “ridiculous” after unveiling a bullish profit upgrade ahead of the group’s full-year results in August.
Flight Centre chief executive Graham “Skroo” Turner has hit out at the government’s decision to reject Qatar Airways’ application for extra flights to Australia.Dan Peled
“The cost of airfares is a huge problem for travellers. I think it’s the most ridiculous decision I’ve ever seen. We have Australian airlines like Qantas,which do not have the capacity for additional services,and yet we’re rejecting Qatar’s extra capacity,” he said.
Qatar Airways applied to add 21 flights to its services from Doha into Sydney,Melbourne and Brisbane last year. Transport Minister Catherine King confirmed the additional bilateral air rights were not being considered on Monday,as reported byThe Australian Financial Review. She did not outline why.
Although supported by most of the tourism and aviation sector,as well as the National and Liberal parties,the application was opposed by Qantas. It was also opposed by five Australian women who were subjected to by Qatari federal police ahead of their flight with the airline in 2020.
The women were part of a larger group who were forced to undergo internal examinations after a newborn baby was abandoned in a bin at the airport. The women are now and the Qatar Civil Aviation Authority – which are both owned by the Qatari government – over the incident.
‘We have Australian airlines like Qantas,which do not have the capacity for additional services,and yet we’re rejecting Qatar’s extra capacity.’
Flight Centre boss Graham “Skroo” Turner
“If the event with the women is the reason the airline has been prevented from additional flights,it is totally illogical,” Turner said. “Qatar as an airline has nothing to do with the behaviour of federal police. If the conduct of a country’s police force is the reason they were rejected we wouldn’t let half the world’s carriers fly to Australia.”
Qatar has a close partnership with Virgin Australia and was one of the few carriers that continued to fly to Australia throughout the COVID-19 pandemic. Qatar also assisted the government’s mission to evacuate Australians during the. Sources close to the application process confirmed the carrier expected to be granted the additional flights as a recognition of its goodwill and close trading ties to the country.
said on Thursday Australia’s airlines should relinquish slots on high-demand domestic routes if they do not intend to fly them – a topic Turner is also passionate about.
“There’s no doubt the major airlines are deliberately cancelling flights to keep fares up and prevent other carriers. I don’t blame them for taking advantage of the system,but it can’t be denied they’re doing it and the government needs to close the loophole to prove they’re not in the pocket of Qantas and Virgin,” Turner said.
Culbert also hit out at the number of flights cancelled by Qantas,Virgin Australia and Rex on major routes,including Sydney to Melbourne,and said the creeping cancellation rates and high airfares had suppressed demand.
“If incumbent airlines have decided to fly less between key domestic markets,then they should relinquish slots to domestic and international carriers who want to operate out of Sydney Airport and provide more choice for customers.”
Passenger numbers on the Sydney to Melbourne routes are still 81 per cent of pre-COVID levels,while Sydney to Canberra sits at 64 per cent.
Flight Centre upgraded its full-year profit guidance for a second time in just six months on Thursday,after its total transaction value increased by more than 115 per cent on 2022 to $22 billion.
With Western Sydney International now 50 per cent complete,Qantas and Jetstar have been announced as the first airlines to sign on to operate out of the airport.
The business now expects its earnings before interest,tax,depreciation and amortisation to be between $295 million and $305 million,a 7 per cent increase on its prior projection at the mid-point.
Turner credited the upgrade to stronger-than-anticipated corporate demand,which will eclipse leisure turnover this year,with $11 billion to leisure’s $10 billion now expected. The business’s full-year results will be unveiled on August 30.
Citi analyst Samuel Seow said the strong corporate performance was an encouraging sign,although he commented the upgrade lacked detail.
“Looking forward,we see this as optimistic,as we see a mix as the key driving factor in achieving a 2 per cent profit before tax margin,” Seow said.
Flight Centre’s share price increased by 4 per cent to $21.68 on Thursday.
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