‘We could easily justify more than two airlines’
Former productivity commission chairman Peter Harris has dismissed suggestions that Australia can only sustain two airlines as the “height of absurdity”, declaring that resetting slots at Sydney Airport will boost competition and lead to better consumer outcomes.
Responding to recent decisions to block the addition of new international flights by Qatar Airways into Australia, Mr Harris added that the government should try to boost international capacity, rather than restrict it, to bring more trade and tourism dollars into the country.
Former Productivity Commission chairman Peter Harris says there’s no need to wait. Alex Ellinghausen
“Regulators talk about having an open skies policy, but strangely when they meet they are seemingly unable to agree on having that,” Mr Harris told the House committee inquiry into promoting economic dynamism, competition and business formation on Tuesday.
“Our policy was a policy of capacity ahead of demand for international [flights] into our main ports that would attract international interests so that they could compete in the international sector servicing Australians and foreigners who want to come to this country and spend money.”
On Tuesday, Trade and Tourism Minister Don Farrell announced $7.5 million in new funding for the states to help attract workers to the tourism sector, where there is growing concern that international tourists are not returning quickly enough since COVID-19.
Mr Harris said he had worked hard to design “good” and “decent public policy for consumer interests” in aviation that should still be in place.
“That was a conscious design of most of what we did in the late 1990s, and it could and should be the case again, in my view,” he said.
Mr Harris also rubbished
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