David Johnston (WA, Liberal Party, Minister for Defence) Share this | Hansard source

I thank the senator for his question and acknowledge, as a South Australian senator, his particular interest in the domestic airline industry. May I answer the question by saying, firstly, that Qantas is a great airline; Qantas is a great Australian airline. It is going through tough times, as are its workers, their families and those who are associated with Qantas contractually. It is a very difficult time for them, as we have observed with the losses that they have incurred in the first half of this financial year.

But the airline plays and will continue to play a key role in servicing many of our cities and regional towns. It also is an important national icon for Australia internationally. The government must do what it can to ensure that Qantas is able to operate in an environment that allows it to compete with other domestic and international carriers and to provide for Qantas's growth and stability into the future.

The Air Navigation Act of our country ensures that Australian international airlines have to be majority Australian owned. Our air services agreements ensure that international airlines are chaired by Australians; at least two-thirds of the board members must be Australians; the head office of such an airline must be in Australia; the operational base must be in Australia; and the airline must be substantially owned and effectively controlled by Australians.

At the moment, Qantas cannot compete against its competitors in a highly competitive market because of the Qantas Sale Act. We seek to fix that and level the playing field for this great Australian airline. We want to see them succeed. We want to support them. There are people here in this chamber who do not. (Time expired)