Attempts to restart a parliamentary probe into Qantas and the decision by the federal government not to grant rival airline Qatar Airways extra international slots were unsuccessful, after Labor, the Greens and independent senator David Pocock voted down the motion.
The inquiry wrapped up in 2023 without hearing evidence from Mr Joyce on how Qantas was being operated, because the former chief executive was in Ireland.
Opposition transport spokeswoman Bridget McKenzie said Mr Joyce still had questions to answer.
"Mr Joyce is one of only three people who know why Mr Joyce, in his time at Qantas, received preferential treatment at the hands of the Albanese government," Senator McKenzie said.
"Australians may never know why the government acted so contrary to the public interest in blocking Qatar Airways' application and refuses to hold the chief witness in the flight credit saga to account."
Mr Joyce stepped down from the airline following multiple controversies, including allegations by the consumer watchdog Qantas sold tickets to thousands of flights that were already cancelled.
The decision not to renew the inquiry came as independent MP Andrew Wilkie urged the government to set up a compensation scheme for airline passengers affected by delayed or cancelled flights.
There is a lack of consumer protections around the dodgy practices of Australian airlines. The Federal Government must listen to the — Andrew Wilkie MP (@WilkieMP) @acccgovau and establish an airline ombudsman and compensation scheme. Please see my full speech 👉 https://t.co/Zzd7vmBMZb. #auspol #politasFebruary 26, 2024
He said recommendations from the consumer watchdog should be followed, including establishing an ombudsman to handle complaints within the troubled airline sector.
"The airlines simply cannot be left to regulate themselves, we need strong consumer protections and the government must heed the calls of the (Australian Competition and Consumer Commission)," he told parliament on Monday.
"Only then will Australians have confidence that they will not be unreasonably out of pocket for flight disruptions, and if there are, there will be appropriate mechanisms in place to help navigate the system."
Mr Wilkie said Australia could look to inspiration from a UK scheme where passengers would be compensated if their flight arrived more than three hours late because of reasons the airlines could control.
He said support for affected passengers such as meal vouchers, accommodation and transport should be able to be provided.
But Labor MP Julian Hill said while reform was needed in the airline sector, a compensation scheme was not the best way to do so.
He said such a scheme could lead to higher airfares.
"We need more consumer protections ... I'm personally a little sceptical, though, about introducing a European-style full compensation scheme,'' Mr Hill said.
He did agree greater consumer protection was needed for flight refunds.
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