Secret Qantas lounges for MPs in Australia are raising concerns about political quid pro quo

SYDNEY: At each of Australia’s major domestic airports, a “secret” unmarked door leads to an exclusive lounge run by national carrier Qantas Airways for the political and business elite.

But the invitation-only lounges – known as the Chairman’s Lounge – have sparked outrage over what some see as an attempt to curry favor with Prime Minister Anthony Albanese’s government.

The furore has already led to several MPs resigning their memberships amid increased scrutiny of the rules surrounding the benefits offered to politicians.

The lounge controversy was sparked by a new book about Qantas, which alleged that the Albanian, in his former role as transport minister and opposition leader, contacted former Qantas chief Alan Joyce to recommend flight upgrades for himself and his family members to ask.

Albanians have denied the claims.

But the accusation, along with revelations that Albanese and other MPs accepted multiple flight upgrades, have heightened long-standing concerns about whether successive governments have unfairly protected Qantas.

Albanese’s ruling Labor Party has been accused of shielding Qantas from international competition by blocking a bid by Qatar Airways in 2023 to add 21 additional weekly flights to and from additional Australian airports.

Qantas also received US$2.7 billion ($2.34 billion) in grants from the previous Liberal-National government to stay afloat during the Covid-19 pandemic, but never had to pay the money back.

While other companies received pandemic-related benefits, Qantas received far more than its main rival, Virgin, and was one of the biggest recipients of government aid.

University of Sydney professor Rico Merkert, an expert on Australia’s aviation sector, told The Straits Times it was “not impossible” that political advantages helped Qantas secure industry-wide support and favors such as its Covid-19 funding .

He said Qantas offered a range of perks, such as access to the Chairman’s Lounge and flight upgrades, and also hosted private dinners for politicians, but noted that other companies, such as mining companies, use similar tactics.

“There are instances where you might think the federal government has protected Qantas, but whether this is directly due to MPs being given access to the Chairman’s Lounge is not clear,” he said.

“It’s impossible to know… Obviously there are ethical questions about what the federal politicians and Qantas were doing, but it’s not something that isn’t happening in other sectors.”

According to the new book, The Chairman’s Lounge: The Inside Story Of How Qantas Sold Us Out, by Joe Aston, a columnist who previously worked for Qantas, the airline’s sweeteners for politicians have also helped it win domestic customers.

The book says Qantas received about 80 percent of government spending on domestic flights, compared with about 11 percent for its rival Virgin in 2023, even though Virgin offered cheaper fares more than 90 percent of the time.

A Qantas spokesperson told The Straits Times that the airline does not comment on the Chairman’s Lounge.

The storm over Qantas benefits has also raised wider questions about the transparency of political gifts and attempts to lobby MPs.

In Australia, federal MPs must register any interests that could interfere with their public duties, including gifts worth more than A$300.

Albanese, for example, last updated his registry on October 15 and reports receiving tickets to sporting events and a sculpted wall from US President Joe Biden, which he presented for public use.

This comes amid a push for tighter controls on political donations.

Labor plans to introduce legislation on November 18 that would require all donations above A$1,000 to be made public, up from the current threshold of A$16,900.

In addition, donations will have to be made public within a month – and daily in the week before the election – to ensure voters are aware of them before voting.

Currently, donations have not been disclosed for months.

Emeritus Professor Adam Graycar of the University of Adelaide, an expert on public policy and corruption, told ST that Australia had little corruption, but the problem – common in rich countries – was that “the nature of corruption is really about buying of access”.

He said he did not believe it was unethical for MPs to receive free flight upgrades, especially as politicians in Australia often travel long distances and travel much more regularly than in countries with smaller landmasses.

“I have no problem with politicians sitting at the front of the plane, but you don’t want people to be influenced,” he said.

“It would be inappropriate for a politician to call an airline and ask for an upgrade. That is actually asking for an advantage.”

Prof Graycar added that the use of underhanded means to secure favors from politicians had declined in Australia in recent decades as there was greater awareness among MPs about the risk of corruption or the perception of corruption.

He said he did not believe Australia’s travel-weary politicians should be denied access to the Chairman’s Lounge, but added: “The way around this is not to ban the Chairman’s Lounge, but to ask politicians to pay for it .” – The Straits Times/ANN