Earlier, one of the aviation industry’s most senior economists Dr Tony Webber told the Senate select committee into bilateral air rights that Australia’s domestic airline competition has weakened substantially since COVID-19.

“We saw the exit of Tiger Airways which held between 7 and 10 per cent of the market, and Virgin is not the same carrier as it was before COVID-19.

“Qantas holds more than 60 per cent of the market, and the way you measure that impact is to look at their margins and the significance of their profits,” Webber said.

Webber used to work as Qantas Airways’ chief economist and now runs independent analytics business Airline Intelligence and Research.

He also said at least part of the reason many flights are cancelled between key capital cities is down to the commercial interest of the major airlines who can easily exploit Sydney Airport’s slot regulation.

“The regulatory framework that is currently in operation essentially incentivises, or can be used, in an anticompetitive way,” Webber said. “I think Qantas is one of the most aggressive competitors ever. If a new carrier encroaches on its routes or its market share it will aggressively respond.”

Webber said there would have been a material improvement in inbound tourism, largely from Europe, if Qatar was granted the flights which would have generated about $1 billion for the economy.

He also said Qatar’s extra flights would have lowered airfares by between 7 and 10 per cent. Webber said Qantas’ international flights have increased by 52 per cent over the six months to June.

Webber doubled down on his previous assessment that Australia does not have the most competitive airspace in the world, contradicting comments made by Prime Minister Anthony Albanese earlier this month.