Greens Call for Qantas Renationalisation as Airline Declines to Pay Back COVID Aid

A line of Qantas aircraft sits at Kingsford Smith Airport in Sydney, Australia, on Oct. 31, 2021. James D. Morgan/Getty Images

The Greens are calling for the federal government to renationalise Qantas if the company resists returning the COVID-19 aid it received from the federal government during the pandemic, a demand that has been resurrected since the flag carrier posted a swing in profit and revenue in fiscal 2023 as travel borders reopened.

“Now that Qantas is posting record profits, it’s only right that they should pay back the $2.7 billion (US$1.73 billion) in public money. If they refuse, the Labor government should consider taking Qantas back into public ownership to keep prices down and protect workers,” Greens spokesperson for Transport, Infrastructure and Sustainable Cities Elizabeth Watson-Brown MP said on Friday.

Ms. Watson-Brown’s statement came after Treasurer Jim Chalmers declined to require Qantas to pay back the COVID-19 subsidies, noting the tourism sector’s economic contribution.

“When those funds were provided by the previous government, there wasn’t an understanding or an agreement that they would be repaid in some form,” Mr. Chalmers told ABC Radio on Friday, noting that the profits “reflect is the fact the Australian tourism industry is making a big contribution to our economy, and that’s a good thing.”

Australian Treasurer Jim Chalmers speaks to the media during a press conference to announce the newly appointed RBA governor at Parliament House in Canberra, Australia, on July 14, 2023. AAP Image/Lukas Coch

The Australian Senate has previously summoned Qantas’ Chief Executive, Mr. Joyce, to explain the airline’s high fares and questionable travel credit schemes.

The company is currently facing a class action lodged by firm Echo Law, which represents passengers who failed to receive refunds for tickets they purchased despite not being able to use them due to the COVID-19 travel restrictions.

Qantas Profits Soar

On Thursday, Qantas booked an attributable statutory profit after tax of $1.75 billion (US$1.12 billion) in the 12 months to June 30, 2023, swinging from a loss of $860 million in the previous year. Its revenue surged to $19.82 billion from $9.11 billion.

Qantas received $2.7 billion in aid during the pandemic, including $900 million from the JobKeeper program, which Mr. Joyce upheld went to its staff.

“Should our people who got the money for JobKeeper pay that back,” Mr. Joyce told 7.30. “I'd say no because that’s asking them to pay it back in a difficult period of time, so what money do we pay back exactly.”

Qantas Group CEO Alan Joyce is seen during a Business Council of Australia breakfast in the Mural Hall at Parliament House in Canberra, Australia on March 17, 2021. Sam Mooy/Getty Images

Qantas provided fleet rental to the former Morrison administration to continue certain operations, such as transporting patients interstate, delivering medicine and exporting agricultural goods.

“I would say, what money did the government give that’s money that should be paid back,” Mr. Joyce said. “I would say no because we provided the service for the government, and we incurred costs to do that.”

Transport Union Contends Qantas Illegally Outsourced Workers

The Transport Workers Union of Australia has been urging Qantas to return the funds received as aid from the government, alleging that the company illegally outsourced workers.

“Qantas received $2.7 billion of tax support then illegally outsourced 1,700 workers. Every dollar of profit reported yesterday should refund the public purse,” the trade union said in a post on X, formerly known as Twitter.

In its financial report, Qantas noted that it will provide more than 21,000 non-executive staff up to $6,000 worth of company shares as a form of gratitude for their part in the recovery. The staff will also receive $500 in travel credit in addition to a $5,000 cash payment to eligible employees as new enterprise agreements are finalised.

The company attributed its recovery to the return of its domestic and international capacities to 96 percent and 67 percent, respectively, of their pre-COVID levels.

“Fundamentally, travel demand is extremely robust,” Mr. Joyce said, as he explained the financial turnaround.

Transport Workers Union (TWU) protesting at Sydney Airport on Feb. 19, 2020. Brook Mitchell/Getty Images

“Despite the cost of living pressures, survey data shows people are planning to spend more on travel over the next six months and less on homewares, renovations and even alcohol.”

Qantas also said that it has ordered 24 aircraft to gradually replace its existing A330. The deliveries of the newly ordered 12 Airbus A350s and 12 Boeing 787s are expected to come starting in fiscal 2027 into the next decade.

“It’s in addition to the 149 firm aircraft we still have in order to continue renewing the domestic fleet for Qantas and Jetstar and for the non-stop Project Sunrise flights to London and New York,” Mr. Joyce said.

Meanwhile, the Greens said that the public has the right to question the Labor party’s dealings with Qantas due to the free membership the airline granted to Nathan Albanese, the son of Prime Minister Anthony Albanese, to the Qantas Chairman’s Lounge.

“People are right to be suspicious of Labor’s dealings with Qantas after revelations that the Prime Minister’s son has been granted free membership to the Qantas Chairman’s Lounge, while the recent decision to block Qatar Airways and secure further monopoly status for Qantas has been made with no scrutiny or clear justification,” Ms. Watson-Brown said.