The Federal Senate established this inquiry following widespread public interest in a decision of the federal government to refuse a request to grant additional routes under the air service agreement between Australia and Qatar. Much of the evidence received during this inquiry focussed on that decision, but also encompassed broader commentary about challenges and opportunities for the future of aviation in Australia.

Considering the substantial volume of evidence received in this inquiry, and its short timeframe, this report does not exhaustively cite all written and oral submissions. The report reviews key evidence via the following four chapters:

• The introductory chapter outlines the conduct of the inquiry and provides brief background information.
• Chapter 2 discusses key evidence about Australia's approach to air service agreements and the recent decision regarding Australia's agreement with Qatar.
• Chapter 3 examines broader issues relating to Australia's aviation industry.
• Chapter 4 provides the Committee's comments and recommendations.

Key recommendations:

• The Committee recommends that the Australian government immediately review its decision not to increase capacity under Australia's bilateral air services agreement with Qatar.
• The Committee recommends that when making decisions relating to bilateral air service agreements, the Australian government have regard to a cost benefit analysis, consult widely with key stakeholders including the Australian Competition and Consumer Commission, and publish a statement of reasons for decisions taken.
• The Committee recommends that the Australian government review reform options to strengthen competition in the domestic aviation industry, including potential divestiture powers to remedy any misuse of market power.