A decision to block Qatar Airways from securing extra flights into Australia won’t be reversed by the federal government.

The decision by Transport Minister Catherine King in July and existing unrest over the airline’s treatment of customers and massive profits have lit a political bonfire in Canberra.

Qantas CEO Alan Joyce on Tuesday announced he would retire two months early to allow the national carrier to rebuild its reputation.

Treasurer Jim Chalmers told reporters on Wednesday the government would not review the Qatar decision, which the opposition said amounted to a “protection racket” in favour of Qantas.

“Transport ministers from both sides of politics from time to time take decisions in the national interest and that’s what’s happening here,” Dr Chalmers said.

He said it had not impeded extra international flight capacity into Australia.

“We are seeing extra capacity come on,” he said.

He later told reporters he had not been consulted on the Qatar decision before it was made.

Prime Minister Anthony Albanese has been drawn into the furore after having to clarify comments he made in parliament.

Mr Albanese initially told parliament, in answer to an opposition question on Tuesday, that he had spoken with Virgin Australia after the transport minister blocked Qatar Airways’ bid for more flights.

Virgin has a strategic partnership with Qatar Airways.

Later, Mr Albanese clarified his answer, telling parliament he spoke to Virgin CEO Jayne Hrdlicka on July 13 – three days after the decision – by phone from Perth while travelling to Canberra after being overseas since July 9.

“In that call, the CEO made representations relating to air services arrangements with Qatar,” he said.

“During that discussion, I did not know that the transport minister had made a decision on July 10, 2023, a detail that was only advised to me after Question Time today.

“I once again confirm I did not speak to the former Qantas CEO (Alan Joyce) before a decision was made.”

Foreign Minister Penny Wong revealed on Wednesday she had spoken with her Qatari counterpart earlier this week, but the issue of the air services agreement was not raised.

“The minister initiated the call to discuss a range of bilateral matters, including in relation to the Al Hamad airport incident, and multilateral issues ahead of the UN General Assembly later this month,” a spokeswoman said.

Five Australian women are taking legal action over their alleged strip searching at the Hamad International Airport – the Doha home of Qatar Airways – in October 2020.

Whether the airport incident had anything to do with the government’s Qatar Airways decision is expected to be raised in a Senate inquiry, alongside issues of competition and ticket pricing.

Ms King has been formally asked to provide documents explaining the decision.

Liberal deputy leader Sussan Ley said the government believed higher airfares were in the national interest.

“We know that international airfares are up by 50 per cent but seat capacity is down by 25 per cent and that we’re missing out on about $788 million a year from inbound tourism,” she told Sky News.

She said the Qatar Airways decision should be overturned.

Qantas also faces Federal Court action by the competition watchdog over allegedly advertised tickets for flights that had already been cancelled.

The company is reviewing the allegations and has acknowledged its standards “fell well short” as the airline emerged from the COVID-19 pandemic.

Last month Qantas announced a record pre-tax profit of $2.47 billion for the past financial year after recording a loss of almost $2 billion the previous year.

Nationals leader David Littleproud said the Qantas board and new CEO had “very serious questions to answer” over their treatment of customers.

Source: AAP