Secret Qantas lounges for MPs in Australia raise 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 triggered an outcry over what some see as an attempt to curry favour with the government of Prime Minister Anthony Albanese.

The furore has already prompted several MPs to cancel their memberships amid heightened scrutiny of the rules surrounding perks offered to politicians.

The controversy over the lounges was sparked by a new book about Qantas, which claimed that Mr Albanese, in his former roles as transport minister and opposition leader, contacted former Qantas head Alan Joyce to request flight upgrades for himself and family members.

Mr Albanese has denied the claims.

But the allegation, along with revelations that Mr Albanese and other MPs accepted multiple flight upgrades, have added to longstanding concerns about whether successive governments have unfairly protected Qantas.

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

Qantas also received A$2.7 billion (S$2.34 billion) in handouts from the previous Liberal-National government to keep it afloat during the Covid-19 pandemic but was never required to repay the money.

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

Professor Rico Merkert from the University of Sydney, an expert on Australia’s airline sector, told The Straits Times it was “not impossible” that political perks helped Qantas secure sector-wide support and favours such as the Covid-19 funding.

He said Qantas provided 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 firms use similar tactics.

“There are instances where you could think the federal government has protected Qantas, though whether it is directly attributable to MPs getting access to the Chairman’s Lounge is not clear,” he said. 

“It is impossible to know... Obviously there are ethical question marks around what the federal politicians and Qantas were doing, but it is not something that doesn’t happen in other industries.”

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

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

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

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

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

For instance, Mr Albanese, last updated his register on Oct 15 to state that he received tickets to sporting events and a carved wall hanging from US President Joe Biden, which he handed over for public use.

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

Labor plans to introduce legislation on Nov 18 requiring all donations above A$1,000 to be disclosed, compared with 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 elections – to ensure voters are aware of them before voting.

Currently, donations are not disclosed for months.

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

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

“I don’t have a difficulty with politicians travelling up the front of the plane, but you don’t want people to be swayed,” he said.

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

Prof Graycar added that the use of underhanded means to secure favours from politicians had reduced 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 deprived of access to the Chairman’s Lounge, but added: “The way around it is not to ban the Chairman’s Lounge, but to ask politicians to pay for it.”