TRANSCRIPT:
The long and controversial tenure of outgoing Qantas CEO Alan Joyce has come to a dramatic end - at a Senate cost of living inquiry.
Qantas just posted a record pre-tax profit of $2.47 billion for the past financial year, after recording a loss of almost $2 billion the year before.
Mr Joyce has fended off criticism of the airline's profit at the inquiry, saying Australia has one of the most open markets in the world, and he expects international fares to fall in 2024.
"International fares are about 10 per cent higher in inflation-adjusted terms compared with pre-COVID levels. Domestic fares are up by about 4 per cent. For Qantas and Jetstar our domestic flight is now above pre-COVID levels. Internationally, we are seeing large amounts of capacity being added back by 50 plus airlines that service this market."
The inquiry has been told Qantas pocketed over 2.7 billion dollars from taxpayers during COVID, money Mr Joyce says will not be paid back.
He says much of it was for JobKeeper and leasing planes.
The outgoing chief has also faced questions about a possible class action over flights cancelled by Qantas during COVID-19.
The committee was told the airline had refunded $3 billion worth of travel credits, but it's now been revealed that doesn't include around $100 million belonging to Jetstar customers.
Stephanie Sully is Jetstar's CEO.
"The Jetstar credit which is around 100 million - we'll take on notice to give you the exact number - is about 50% of that credit is held by people and it's less than $100. So you can imagine that the context of contacting those customers to use that amount. Jetstar is primarily Australian based credit as well."
A bid by Qatar Airways to add extra flights has also come under scrutiny at the inquiry.
Mr Joyce has rejected claims that Qantas colluded with the government to block competition.
And he says he won't confirm the contents of any conversations he had on the subject.
"I've said that any conversations I have with the Prime Minister or Minister I never divulge. I've kept that for all seven Prime Ministers, and either way, and I have no intent in changing in divulging conversations that take place."
With the government preparing to release its aviation white paper in 2024, Mr Joyce has told the Senate committee that policies are needed to help with the efficient resolution of commercial disputes between airlines and airports.
Alan Joyce says the regulatory regime that governs the relationship between airports and airlines isn't working.
Assistant Treasurer Stephen Jones says they're doing the best they can to make things fair for everyone.
"We want to ensure that we have a viable industry in Australia... and so having a national airline that occasionally post a profit is not a bad-news story, (it) is actually a good news story. The real issue here is that Qantas and other carriers are treating their customers respectfully and ensuring they're providing the right sort of services, on time services, the lowest possible priced tickets."
Aviation expert Geoffrey Thomas says affordable travel is crucial.
"We absolutely depend on aviation, probably more than any other country of the world because of our isolation. So it's very important that they're profitable. It's very important that they have the ability to buy the latest technology aircraft which you know reduce fuel burn. The new aircraft that Qantas has got on order, they are 30, even 40 percent more fuel efficient than the ones they're are going to replace. That's all about the environment.It's all about cutting fares, it's a win win situation."
