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CASE FILE · THE AIRLINE RORTARTICLE 3 / 8By The Rort · March 2026 · updated 8 October 2026 · therort.com.au

The Qatar block

On 10 July 2023, Transport Minister Catherine King rejected Qatar Airways' application to almost double its flights to Australia. Qatar found out via media. The letter giving no reasons arrived ten days later. Qantas had lobbied against …

Cost to the Australian economy in lost tourism, ACCI estimate · ESTIMATE by the ACCI, as reported by Al Jazeeraat least A$788m a year
Reading time8 min
THE RORT STANDARDPublished before 1.0
THE QATAR BLOCK: PROTECTING QANTAS, NOT AUSTRALIANS July 10, 2023 Transport Minister Catherine King rejects Qatar Airways bid 21 extra weekly flights blocked Sydney, Melbourne, Brisbane, Perth ACCI ESTIMATE OF THE ANNUAL COST TO THE AUSTRALIAN ECONOMY at least A$788M a year in lost tourism, as estimated by the ACCI and reported by Al Jazeera QATAR DURING COVID-19 Maintained flights when others quit Flying as few as 20 passengers per flight to keep Australians connected THE OUTCOME Feb 2025 Qatar acquired 25% of Virgin Australia anyway The block achieved nothing except higher fares THE RORT · SOURCE: SENATE INQUIRY, ACCC, ACCI
Qatar Airways found out its application had been rejected by reading about it in the media.

Qatar Airways' Senior Vice President, Fathi Atti, found out that his airline's application had been rejected by the Australian government the same way most Australians did: he read about it in the media. [1,12]

The decision had been made on 10 July 2023. 4 No notification was given to Qatar. No reasons were provided. 1 A letter, dated 14 July 2023, arrived ten days later, on 20 July 2023. [1,12] The letter did not explain the decision. 1

“So you found out your application for additional flights was rejected by the Australian Government through the media?”

Senate committee to Fathi Atti, September 2023 · [12]

“Yeah. The first time.”

Fathi Atti, Qatar Airways SVP · [12]

Qatar had applied to add 21 flights per week to its existing 28 weekly services, flights to Sydney, Melbourne, Brisbane and Perth. [2,5] The additional flights were scheduled to start as early as February 2023. 14 Their approval was considered routine by the airline. [1,14] Qatar had maintained flights to Australia throughout the COVID pandemic, sometimes with as few as 20 passengers per flight, while Qantas was grounded. 2

None of that mattered. The application was rejected. No reasons were given. The man most likely to hold the answers, former Qantas CEO Alan Joyce, left Australia and never appeared before the inquiry established to investigate the decision. [8,9,10]

Fig. 01 / Blocked at the front door, admitted at the side
  1. July 2023
    10 JulyTransport Minister Catherine King rejects Qatar's bid to add 21 flights a week; no notification, no reasons, and the Acting Prime Minister not consulted
    20 JulyA letter dated 14 July 2023 reaches Qatar; it does not explain the decision
  2. September 2023
    Day not givenThe Senate establishes an inquiry into the decision by a single vote, 32 to 31
    Day not givenAlan Joyce steps down as Qantas CEO and leaves Australia; he never appears before the inquiry
  3. February 2024
    Day not givenThe Senate votes 30 to 28 against resuming the inquiry to hear Joyce; the inquiry is closed
  4. February 2025
    27 FebruaryThe Foreign Investment Review Board approves Qatar Airways' 25 per cent stake in Virgin Australia
  5. March 2025
    28 MarchThe ACCC grants final authorisation for a five-year alliance between the two airlines
  6. June 2025
    Day not givenVirgin Australia begins 28 weekly flights to Doha, using Qatar Airways aircraft and crew

In date order. Spacing is not to scale.

Stated in: §02, the opening, §03, §04, §05

Fig. 01Source: the article text, each mark cited to its sentenceAs of 2026‑04‑03Hand-curated

01What Qantas said, and what it also said

Qantas did not hide its opposition to Qatar's application. When the story broke, the airline confirmed it had lobbied the government against approval. 2 Its stated reason: the extra flights would 'distort the market.' 2

In the same period, Qantas made a separate and contradictory admission: it would not be able to meet passenger demand on international routes for at least five years. [2,3]

The extra flights would distort the market, a market Qantas simultaneously acknowledged it could not adequately serve.

These two statements were made in parallel. The extra flights would distort the market, a market Qantas simultaneously acknowledged it could not adequately serve. [2,3] The route between Australia and Europe was operating at approximately 70 per cent of its pre-COVID capacity at the time of the decision. 3 The ACCI estimated that blocking Qatar's bid would cost the Australian economy at least A$788 million a year in lost tourism. 3

At least A$788 million
the ACCI's estimate of the annual cost to the Australian economy, in lost tourism, of blocking Qatar's additional flights
Source · ACCI, via Al Jazeera [3]

“If Qatar was allowed to double its flight capacity and come in with brand new aircraft and great service, Qantas would not be able to respond right now and they argue that would be very bad for the industry. But the truth is it would only be bad for Qantas. The decision taken by the government was not pro-Australia or pro-tourism. It was pro-Qantas.”

Professor Rico Merkert, University of Sydney, Deputy Director of the Institute of Transport and Logistics Studies · [3]

Update, 7 October 2026. The opening now gives the year of the letter Qatar received, dated 14 July 2023 and received on 20 July 2023, ten days after the 10 July 2023 decision, as its sources record [1,12]. Nothing in the account has changed.

02The decision and its justifications

Transport Minister Catherine King's public justifications shifted over the weeks following the announcement. [4,13] The formal statement was that the extra flights were 'not in Australia's national interest,' 5 a formulation so broad as to be unfalsifiable. 13

Then came the strip-search context. 4 In October 2020, more than a dozen female Australian passengers at Doha's Hamad International Airport were subjected to invasive examinations after a premature baby was found abandoned in an airport bathroom. 4 The incident had been widely reported and was the subject of ongoing litigation. 4

On 10 July 2023, the same day King made the decision to reject Qatar's flights, she signed a letter to the women affected by the Doha incident, writing: 4

“As most Australians were, I was shocked by what happened to you at Hamad International Airport. The treatment that you received was disgraceful.”

Catherine King, Transport Minister, letter to affected women, 10 July 2023 · [4]

King subsequently said the strip-search incident gave 'context' to her decision but was not the single reason for it. 4 Critics noted the timing: the letter was signed on the same day as the rejection, and the strip-search incident had occurred nearly three years earlier without preventing Qatar from operating 28 weekly flights. [4,13]

King maintained 'public interest immunity' to withhold the relevant documents, her communications with Qantas and her department's advice, from parliament. 8

“The government sought to prevent the committee from fully investigating the reasons why additional Qatar Airways flights were rejected by refusing to release documents and placing a gag on the infrastructure and foreign affairs departments.”

Senate inquiry majority report · [8]

She declined to appear before the committee. 13 She labelled the inquiry 'a political stunt.' 13

03The Acting Prime Minister was not consulted

On 10 July 2023, Anthony Albanese was travelling abroad. 2 Richard Marles was Acting Prime Minister. 2

When Marles was asked whether he had been consulted before King made the decision, he confirmed he had not. 2 He acknowledged being Acting PM on the day, adding that the decision was 'within the purview' of the transport ministry. 2

The decision to reject a major international airline's application, a decision the ACCI estimated would cost the economy at least A$788 million a year in lost tourism, was made without consulting the Acting Prime Minister and without any stated reason being provided to the airline itself. [2,3]

04The Senate inquiry: a Joyce-shaped hole

The Senate established its inquiry into the Qatar decision in September 2023, after a motion from Nationals senator Bridget McKenzie passed by a single vote: 32 to 31. 6 The government and the Greens nearly stopped it from proceeding. 6

32–31
the single-vote margin by which the Senate inquiry was established
Source · SBS News [6]

Over five weeks of hearings, the committee heard from Qatar Airways executives, aviation experts, competition economists, tourist industry representatives, airport operators, and Qantas's own chair and new CEO. 7 Virgin Australia CEO Jayne Hrdlicka told the inquiry that the government had changed its stance on Qatar's application only after Alan Joyce expressed his dissatisfaction. 6 Transport department officials confirmed that only Qantas and Virgin were consulted before the advice was sent to the Minister. 7

Former ACCC chair Allan Fels told the inquiry the situation was of 'unprecedented importance' in its impact on Australian consumers. 12 He called for divestiture powers, the ability to force Qantas to sell Jetstar, as a structural remedy for the concentration in Australian aviation. 8

The one person who appeared unable to attend was Alan Joyce. He had stepped down as Qantas CEO in September 2023 and left Australia. 9 He said he was unable to appear due to 'personal obligations while overseas,' 9 noting that the committee could not compel him to appear while he was outside Australian jurisdiction. 9

“I want him to front up.”

Senator Bridget McKenzie, committee chair · [9]

He never fronted up. [9,10]

In February 2024, the Senate voted 30 to 28 against resuming the inquiry to hear Joyce and to follow up on Qantas's unsatisfactory answers to questions on notice. 10 The inquiry was formally closed. 10 Its key question, what exactly was said between Qantas and the minister's office before the decision, remains unanswered. [8,10]

30–28
the Senate vote that killed the inquiry before Alan Joyce could be heard
Source · ch-aviation [10]
The evidence supports the conclusion that the government rejected Qatar Airways' request because of interventions by former Qantas CEO Alan Joyce. Joyce never appeared before the committee. The motion to resume the inquiry to hear him was defeated 30 to 28. The key documents were withheld under public interest immunity. [7,8,9,10]

05The coda: Qatar arrived anyway

In February 2025, eighteen months after the block, Qatar Airways acquired a 25 per cent stake in Virgin Australia. 11 The Foreign Investment Review Board approved the transaction on 27 February 2025. 11 On 28 March 2025, the ACCC granted final authorisation for a five-year integrated alliance between the two airlines. 11

Under the alliance, Virgin Australia commenced 28 weekly flights between Australia and Doha from June 2025, using Qatar Airways aircraft and crew under a wet-lease arrangement. 11 Melbourne services followed in December 2025. 11

A$3 billion
estimated economic benefit of the Qatar-Virgin alliance over five years, the same figure Qatar cited at the 2023 Senate inquiry for the flights that were blocked
Source · Virgin Australia / ACCC [11,14]

The economic benefit cited for the alliance: an estimated A$3 billion over five years. 11 The same A$3 billion figure Qatar had cited at the 2023 Senate inquiry when describing what the blocked flights would have contributed. 14

The competition arrived. It took a different route, equity stake and alliance rather than direct bilateral rights, and it arrived eighteen months late. [11,15] During those eighteen months, Australian consumers paid for flights on the Australia-Europe route without the competitive pressure Qatar's additional capacity would have provided. [3,11] Separately, the ACCI estimated that the block would cost the economy at least A$788 million a year in lost tourism. 3

Qatar was blocked in July 2023. It arrived in June 2025, through a different door, via a 25% equity stake in Virgin Australia approved by the same government that blocked the flights. The competitive outcome Qantas lobbied to prevent arrived anyway. The ACCI estimated the block would cost the economy at least A$788 million a year in lost tourism. [3,11,15]

Correction, 8 October 2026. This article gave the ACCI's estimate of the cost of the block as a range with a low end of A$540 million a year, in places as an "up to" ceiling, and in places described it as a cost to Australians or consumers, or as the price of lost competition. The source cited 3, Al Jazeera, carries no A$540 million figure, and reports that the ACCI "has estimated the decision will cost the Australian economy at least 788 million Australian dollars ... annually in lost tourism": a floor, not a ceiling. The ACCI's estimate, as Al Jazeera reports it, is one figure: at least A$788 million a year in lost tourism, a cost to the Australian economy. The range, its A$540 million low end, the "up to" wording and the descriptions of it as a cost to consumers or of lost competition are withdrawn. The subtitle, the key facts, the fact box, the closing quotation, the reference note and the graphic now give the figure as the ACCI's estimate, as reported by Al Jazeera. 3

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  • 8 October 2026Record
    Record: article 3 corrected, 8 October 2026
    The Airline Rort · the ACCI's estimate corrected, 8 October 2026
    Read the desk note

    CORRECTED 8 October 2026 (case: THE AIRLINE RORT, article 3, The Qatar block).

    ARTICLE CHANGES. The article gave the ACCI's estimate of the cost of the Qatar block as a range with a low end, in places as an 'up to' ceiling, and in places called it a cost to Australians or consumers or the price of lost competition. The source cited, Al Jazeera, carries no figure for that low end, and gives the figure as 'at least', a floor, not a ceiling. The article now gives the ACCI's estimate as Al Jazeera reports it, as one figure, at least A$788 million a year in lost tourism, a cost to the Australian economy, in the subtitle, the brief, the body, the fact box, the key facts, the closing quotation, the reference note and the graphic. A dated Correction paragraph stands in the closing section. The Airline Rort case counter on the case page was a ticking running total until 8 October 2026 and is now a static estimate attributed to the ACCI.

    STILL OPEN: nothing new.

    NEXT DATE: none is fixed by any document read for this correction.

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THE RORT STANDARD 1.0: published before 1.0, not yet reviewed
This piece was published before the standard took effect on 8 Oct 2026 and has not been reviewed against it. What follows is what its own data records, not a finding that it meets the standard.
RS-1 0 of 15 references are primary documents (Tier 1). Enforced on new pieces by the release gate (RS-1.1) and the desk record.
RS-2 15 references: resolves checked 15, exists confirmed 0, supports confirmed 0, the rest unchecked. Enforced on new pieces by the release gate (RS-2.1) and the desk record.
RS-3 Case counter: ESTIMATE by the ACCI, as reported by Al Jazeera (static, attributed). Enforced by the release gate (RS-3.1 to RS-3.4) and the desk record.
RS-4 Not graded: published before 1.0. Enforced on new pieces by the release gate (RS-4.1 to RS-4.2) and the desk record.
RS-5 Right of reply: not recorded for this article. Enforced on new pieces by the release gate (RS-5.1 to RS-5.8) and the desk record.
RS-6 Unnamed sources not yet declared (published before 1.0). Enforced on new pieces by the release gate (RS-6.1 to RS-6.2) and the desk record.
RS-7 Corrections: 8 Oct 2026. Enforced by the release gate (RS-7.1 to RS-7.2) and the desk record.
RS-8 None declared. Enforced by the release gate (RS-8.1) and the desk record.
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RS-11 Complaints: desk@therort.com.au. Factual errors: corrections@therort.com.au. Acknowledged within five business days. Enforced by the release gate (RS-11.1 to RS-11.4) and the desk record.
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  1. MastheadSBS NewsSurprised and shocked: Qatar Airways found out about extra flights rejection from the mediaSeptember 2023https://www.sbs.com.au/news/article/surprised-and-shocked-qatar-airways-found-out-about-extra-flights-rejection-from-the-media/5dgm55r0fQatar SVP Matt Raos at Senate inquiry: 'We were surprised and shocked by the decision.' Qatar found out about rejection via media on July 10; received a letter dated July 14 on July 20. 'Even more surprising was the government gave us no reason for rejecting our application.' Qatar SVP Fathi Atti: 'It was shocking for us to get the decision through the media and more shocking that we received the letter later which does not describe why.'
    • Link loaded when machine-checked, 2026-08-16
  2. MastheadAl JazeeraQatar Airways CEO says Australian decision to block flights very unfairSeptember 2023https://www.aljazeera.com/news/2023/9/17/qatar-airways-says-australian-decision-to-block-flights-very-unfairQatar had applied for 21 extra weekly flights. Minister King rejected bid July 10, 2023. Qantas admitted lobbying against; argued flights would 'distort' market. Qantas admitted it could not meet demand for 'at least five years.' Qantas held 60%+ of domestic market. Deputy PM Richard Marles: not consulted despite being Acting PM on that day. Senator McKenzie: 'I believe they are running a protection racket for Qantas.'
    • Link loaded when machine-checked, 2026-08-16
  3. MastheadAl JazeeraAustralia fumes over soaring airfares as Qatar Airways flights blockedAugust 2023https://www.aljazeera.com/economy/2023/8/31/australia-fumes-over-soaring-airfares-as-qatar-airways-bid-blockedRoute between Australia and Europe at approximately 70% of pre-COVID capacity at time of decision. Economic cost: the ACCI estimated at least A$788M a year in lost tourism, as Al Jazeera reports it. ACCI chief John Hart: 'The decision is going to delay the recovery, keep airfares high, contribute to inflation, damage our tourism industry and the Australian economy.' Prof Rico Merkert (Uni Sydney): 'The decision taken by the government was not pro-Australia or pro-tourism. It was pro-Qantas.' Qantas received approximately A$2.7 billion in taxpayer COVID support.
    • Link loaded when machine-checked, 2026-08-16
  4. MastheadThe New DailyTransport minister reveals context to Qatar Airways decisionSeptember 2023https://www.thenewdaily.com.au/news/2023/09/07/catherine-king-qatar-airwaysKing confirmed July 10 decision date. Same date she signed letter to women strip-searched at Doha airport in 2020. Letter to women stated: 'As most Australians were, I was shocked by what happened to you.' King: 'no single factor' influenced decision. Women's letter cited in 'context' but King would not release communications showing exact sequence. Albanese informed before July 18 public announcement; exact date King did not disclose.
    • Link loaded when machine-checked, 2026-08-16
  5. Simple FlyingAustralian Government Rejects Qatar Airways RequestJuly 2023https://simpleflying.com/australian-governement-denies-qatar-airways-request-increase-flights/Qatar applied to almost double its 28 weekly flights. State premiers had supported Qatar's bid as tourism boon. King's statement: 'The government has determined that agreeing to the Qatar Civil Aviation Authority request for additional services is not in our national interest.' Government sought Qantas's opinion as part of bilateral air rights application process. Qantas opposed, citing job losses, despite receiving billions in government support.
    • Link loaded when machine-checked, 2026-08-16
  6. MastheadSBS NewsQantas embroiled in Senate inquiry as new CEO takes chargeSeptember 2023https://www.sbs.com.au/news/podcast-episode/qantas-embroiled-in-senate-inquiry-as-new-ceo-takes-charge/eex0nal5bInquiry established after Qantas admitted lobbying against Qatar. Motion passed 32 to 31, one vote. Chaired by Bridget McKenzie. Virgin CEO Jayne Hrdlicka told inquiry: government changed its stance only after former Qantas CEO Alan Joyce expressed dissatisfaction. Transport officials confirmed: only Qantas and Virgin were consulted before advice sent to Minister.
    • Link loaded when machine-checked, 2026-08-16
  7. TradeSimple FlyingAustralian Senate Says Qatar Decision Must Be Reviewed ImmediatelyOctober 2023https://simpleflying.com/australian-senate-qatar-decision-must-reviewed/Senate committee report (October 9, 2023): 137 pages, 10 recommendations. Committee chair McKenzie: 'evidence supports conclusion that government rejected Qatar Airways request because of interventions by former Qantas CEO Alan Joyce.' Economic cost estimate up to A$1 billion per year. Only Qantas and Virgin consulted before advice sent to Minister, confirmed by transport officials. Government recommended to 'immediately review' decision. King labelled inquiry 'a political stunt.'
    • Link loaded when machine-checked, 2026-08-16
  8. MastheadCrikeySenate inquiry report into Qatar decision has a giant Joyce-shaped holeOctober 2023https://www.crikey.com.au/2023/10/10/senate-inquiry-report-qatar-qantas-alan-joyce/Report: 'Despite lengthy questioning of the Qantas chair and new CEO, there were questions unable to be satisfactorily answered for which the evidence suggests Mr Joyce will likely hold the answers.' McKenzie: government 'sought to prevent the committee from fully investigating... refusing to release documents and placing a gag on the infrastructure and foreign affairs departments.' Inquiry found competition reforms could include 'potential divestiture powers.' Former ACCC chair Allan Fels: 'strongly in favour' of divestiture powers.
    • Link loaded when machine-checked, 2026-08-16
  9. MastheadThe New DailyAlan Joyce to be summoned by Senate inquirySeptember 2023https://www.thenewdaily.com.au/finance/finance-news/2023/09/26/alan-joyce-senate-inquiry-qantasJoyce stepped down as CEO early September 2023 and left Australia. Said he could not appear before inquiry due to 'personal obligations while overseas.' McKenzie: 'I want him to front up.' Committee resolved to summon Joyce on his return. Joyce never appeared. Motion to resume inquiry to hear Joyce defeated 30 to 28 in February 2024.
    • Link loaded when machine-checked, 2026-08-16
  10. Tradech-aviationAustralian Senate opts not to restart Qatar Airways inquiryMarch 2024https://www.ch-aviation.com/news/137767-australian-senate-opts-not-to-restart-qatar-airways-inquiryFebruary 26, 2024: Senate voted 30 to 28 against resuming inquiry. McKenzie had moved to resume hearings to examine absent witnesses and 'government affairs representatives from Qantas, noting that Qantas answers to questions on notice were unsatisfactory.' Parliament's official website notes committee has completed its inquiry. Joyce never appeared.
    • Link loaded when machine-checked, 2026-08-16
  11. OfficialVirgin Australia / Qatar AirwaysFIRB approval and ACCC authorisation for Qatar-Virgin allianceFebruary–March 2025https://www.virginaustralia.com/us/en/newsroom/2025/2/virgin-australia-and-qatar-airways-partnership-takes-off/February 27, 2025: FIRB approved Qatar Airways 25% stake in Virgin Australia. March 28, 2025: ACCC granted final authorisation for 5-year integrated alliance. 28 weekly flights Doha to Australia commenced June 2025 (Sydney, Brisbane, Perth); Melbourne from December 2025. Wet-lease arrangement using Qatar Airways aircraft and crew. Estimated A$3 billion economic contribution over 5 years, the same figure Qatar cited at the 2023 Senate inquiry for the flights that were blocked.
    • Link loaded when machine-checked, 2026-08-16
  12. MastheadSBS NewsSenate questions Qantas over market dominance and Qatar being denied extra flightsSeptember 2023https://www.sbs.com.au/news/podcast-episode/senate-questions-qantas-over-market-dominance-and-qatar-being-denied-extra-flights/q97yvoh91Fathi Atti (Qatar SVP): 'So you found out your application for additional flights was rejected by the Australian Government through the media?' / 'Yeah. The first time. And then on the 20th of July we received the letter dated 14 to our civil aviation which they passed it to us.' Senator McKenzie inferred possible 'quid pro quo' for Qantas endorsing the Voice referendum. Qantas chair Goyder: 'I've had no discussions with the Prime Minister or indeed any member of government on the Qatar decision.'
    • Link loaded when machine-checked, 2026-08-16
  13. MastheadThe ConversationSenate committee says government should immediately review its rejection of Qatar flightsOctober 2023https://theconversation.com/senate-committee-says-government-should-immediately-review-its-rejection-of-qatar-flights-215263Inquiry tabled October 9, 2023. King's various justifications: (1) 'national interest'; (2) Doha strip-search 'context'; (3) job protection. Report: 'The committee criticises Transport Minister Catherine King for not clearly articulating the factors in her decision.' Inquiry recommended: government publish reasons for bilateral air service decisions; cost-benefit analysis; consult ACCC. King declined to appear before committee.
    • Link loaded when machine-checked, 2026-08-16
  14. Doha NewsShocked: Qatar Airways found out about rejected Australia bid via the mediaSeptember 2023https://dohanews.co/shocked-qatar-airways-found-out-about-rejected-australia-bid-via-the-media/Scheduled start date for additional flights: February 2023. Qatar SVP Raos: 'Even more surprising was that the government gave us no reason for rejecting our application, we really can't understand why. Qatar Airways and the State of Qatar have been a friend and ally of Australia for 40 years.' Qantas CEO Hudson told inquiry Qantas also learned of the decision via media, not told in advance. Qantas committed to providing communications to committee only, citing immunity.
    • Link loaded when machine-checked, 2026-08-16
  15. TradeLoyaltyLobbyAustralia Approves Qatar Airways 25% Stake in Virgin AustraliaFebruary 2025https://loyaltylobby.com/2025/02/27/australia-approves-qatar-airways-25-stake-in-virgin-australia/Qantas had essentially lobbied against allowing Qatar Airways to offer more services to Australia because of its alliance with Emirates and its own long-haul flights. The Qatar/Virgin deal is described as similar to the earlier Etihad/Virgin structure. Qatar is now achieving in 2025, via equity stake and wet-lease, what it was blocked from doing via direct flights in 2023. The route arrives. The ACCI estimated the block would cost the economy at least A$788M a year in lost tourism.
    • Link loaded when machine-checked, 2026-08-16
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