A political storm over transparency in government has erupted amid claims that Prime Minister Anthony Albanese sought flight upgrades from former Qantas chief Alan Joyce.
The criticism against Albanese was first raised after claims made in Joe Aston’s new book, The Chairman’s Lounge, that he personally lobbied Qantas CEO Alan Joyce for free upgrades, including on personal flights, while serving as transport minister and tasked with regulating the aviation sector.
Albanese is facing pressure to explain his purported close relationship with Joyce, and the news has reawakened questions over the federal government’s previous decision to block a Qantas competitor’s bid to expand in Australia.
Last year, as Australia exited the COVID-19 pandemic, the government rejected a Qatar Airways bid to expand its flights in and out of Australia. The airline had applied to add 21 extra weekly flights at Australian airports, and it was thought that this would help cut the price of airfares for consumers.
The government has since dodged questions surrounding its decision to reject Qatar Airways’ application, and to explain what meetings were had with Joyce about the matter.
Various ministers cited “national interest”, suggesting the application from Qatar was too large, the government was protecting Qantas’ viability and that a 2020 incident where women were strip-searched at Doha airport had been a factor.
What is Labor’s response?
A spokeswoman for the prime minister issued a statement on Wednesday that said: “The prime minister did not ever call Alan Joyce seeking an upgrade.”
“All travel has been appropriately declared and is a matter of public record.”
The prime minister’s office later clarified its position that no other forms of communication were used.
Treasurer Jim Chalmers, Housing Minister Clare O’Neil, Finance Minister Katy Gallagher and Social Services Minister Amanda Rishworth have all backed the prime minister in a series of media appearances.
On Thursday, Gallagher defended Albanese on Nine’s Today show, saying “He’s declared all of these flights, he’s abided by the rules. This guy I work with him very closely. I know how fastidious he is about these [rules]. The reason we’re talking about them is because they’re declared.”
Why do flight upgrades matter?
A number of MPs, made up mostly of Independents, have said the flight upgrade scandal raises critical questions surrounding transparency in government processes.
Federal MP for Wentworth Allegra Spender told 3AW Mornings that these types of situations “reduces trust in the community”. Spender has also called for an update to ministerial code, following the allegations against Albanese.
“I think this is really helpful that this has come out, I think we do need to update the ministerial code,” Spender said.
“Having a much stronger expectation that people won’t be accepting gifts particularly when it comes to things that are close to their own portfolio.”
Alongside Spender, Independent MP for Indi Helen Haines is calling for urgent reforms to laws around lobbying and donations.
“I am not accusing the prime minister of making decisions for the wrong reasons but the point is that the existence of freebies and close friendships can be enough to raise doubt about any elected official,” Haines wrote in The Guardian.
“Our accountability and transparency frameworks should give avenues to remove this doubt. Or, even better, avoid it in the first place.”
Haines points out that efforts for reform from crossbenchers have already been put forward, but more action must be taken from the major parties to enact change.
Crossbenchers such as Dr Monique Ryan, Dr Sophie Scamps, Andrew Wilkie, Rebekha Sharkie, Kate Chaney, Zali Steggal and Haines have all introduced bills on electoral reform.
“There’s a clear opportunity in front of the government to work with independents to make politics better,” writes Haines.
Joining in the calls for reform, Independent Senator David Pocock says the Albanese Qantas drama is a symptom of a loose lobbying system in Australia.
He notes that it’s worth looking into whether or not Albanese was messaging Joyce, however “you’ve got politicians willing to sling mud, but they’re not actually willing to address the root causes of this, which is a lobbying system that is just so loose”.
“The Qantas government relations team in Australia are not lobbyists– they have sponsored passes. We learnt in the airline inquiry that the infrastructure minister– who made the Qatar decision– sponsors passes for the Qantas executive to get access into parliament house. Previous coalition ministers have done the same. You can’t tell me that that is a standard that meets the expectations of Australians.”
A series of Qantas scandals
A recent analysis of the parliament’s register of pecuniary interests reveals that nearly 90 per cent of Australian federal politicians have taken up membership in the exclusive Qantas Chairman’s Lounge. Several politicians have also disclosed receiving Qantas flight upgrades since May 2022.
Former CEO of Qantas, Alan Joyce has described the lounge as “the most exclusive club in the country,” offering private airport facilities, fine dining, and comfort amenities to members.
Joyce resigned from his CEO role in early September last year. A week after he resigned, Qantas issued its first-ever apology to the 1,700 ground crew and staff it illegally sacked during the pandemic period and unsuccessfully fought through the Federal Court and High Court.
According to its 2024 annual report, Qantas revealed it paid Joyce an extra $3.4 million for his last two months as CEO. The multi-million-dollar payment offset the costs of some of a series of scandals that occurred under his watch, including the sacking of the `1,700 workers and the ACCC suing the airline for cancelled “ghost flights”.
Following Joyce’s resignation after 15 years in the role, Qantas saw its first woman take the helm for the first time in 103 years. Current CEO Vanessa Hudson stepped into one of the most high-profile positions in corporate Australian in November last year.
Hudson took a $1.5 million pay cut in the 2023-25 financial year after the Qantas board slashed the bonuses of executives by 30 per cent, following the airline’s scandals.