After hearing allegations of anticompetitive behaviour within Australia’s aviation market,the inquiry found the government should consider regulatory reforms to strengthen competition,“including potential divestiture powers to remedy any misuse of market power”.
Former Australian Competition and Consumer Commission chair Allan Fels told the inquiry he was “strongly in favour” of divestiture powers. “I believe it would have a very big effect on behaviour,including by Qantas,” he said.
The inquiry report,released on Monday,recommended the Qatar decision be immediately reviewed,the consumer watchdog be consulted in the future,and reasons for all decisions be published,along with a cost-benefit analysis,after the opposition accused Labor of evading scrutiny over the decision.
“The government sought to prevent the committee from fully investigating the reasons why additional Qatar Airways flights were rejected byrefusing to release documents and placing a gag on the infrastructure and foreign affairs departments,” said Nationals senator Bridget McKenzie,the inquiry chair.
Kingrefused to front the inquiry when called,accusing the Coalition of staging a political stunt,while former Qantas chief executive Alan Joyce didn’t attend due to prior overseas commitments.
The committee recommended the Senate request the House of Representatives give King leave to appear before a potential second inquiry,comprised of the same members,which would also summon Joyce.