The former head of Australia’s competition watchdog has asserted that Qantas airfares soared by 30% due to the federal Labor government’s refusal to allow Qatar Airways to expand its operations into the country’s major airports.

Alan Fels made these claims as part of an inquiry into price gouging commissioned by the Australian Council of Trade Unions, with his findings unveiled on Wednesday.

In his examination of egregious instances of price gouging, Fels singled out Qantas as a prime example.

Speaking to ABC on Thursday, he highlighted the impact of the blocked expansion on airfares, stating, “Well, where do you start? I thought the Qantas airfares were 30 per cent higher because of the blocking of Qatar.”

Anticompetitive barriers

Fels emphasised the need for swift action to dismantle anticompetitive barriers within the airline industry, both domestically and internationally.

He urged the government to reconsider restrictions on international aviation, particularly in light of decisions such as blocking Qatar’s request for increased flight operations.

Fels criticised the lack of competition in Australia’s retail sector, contrasting it with the more robust market in the United Kingdom.

While the UK boasts “four or five supermarkets fighting it out,” Fels lamented the dominance of just two major players in Australia, which he believes stifles competition and undermines consumer interests.

As Fels continues to advocate for reforms aimed at fostering competition and driving down prices, his remarks underscore broader concerns about market concentration and its impact on consumer choice and affordability.