Economic Impact: Halting Qatar Airways Flights Could Mean $500 Million Loss per Year

Australia’s decision to reject Qatar Airways’ bid for extra flights could lead to an economic loss exceeding $500 million per year, according to reports. Despite the carrier’s request for 21 additional weekly flights being denied due to job protection concerns, experts estimate potential losses of $540 million to $788 million annually, based on half of the seats being sold to overseas travelers. The decision has sparked debates about the balance between safeguarding jobs and boosting tourism, as Qatar Airways seeks to maximize its landing rights in the region.

“We will always consider the need to ensure that there are long-term, well-paid, secure jobs by Australians in the aviation sector when we are making these decisions,” she added. In contrast, Australia’s Tourism and Trade Minister, Don Farrell, has not denied his support to granting Qatar Airways more landing rights to boost the country’s tourism sector, which has regain its footing to pre-pandemic levels, the Sydney Morning Herald reported. Currently, the Gulf carrier operates 28 weekly flights between Doha’s Hamad International Airport (DOH) and five Australian cities, namely Adelaide (ADL), Brisbane (BNE), Melbourne (MEL), Perth (PER), and Sydney (SYD), as part of its agreement with the Australian Government. These flights utilize the carrier’s Boeing 777-300ER aircraft on routes to ADL, BNE, and MEL, while Qatar Airways’ Airbus A380 jets operate flights to PER and SYD. With variable demand on different routes, the airline occasionally operates “ghost flights” with fewer passengers on board. To fully capitalize on its landing rights, Qatar Airways launched a new domestic route in November linking MEL and ADL. Nevertheless, as the carrier lacks the right to sell the domestic route, the flight is sold as an add-on service on flights between DOH and MEL. The decision has sparked debates on the significance of drawing more tourists to the country, particularly with high airfares deterring international visitors.