Qantas Airways has rejected a Senate proposal that would require the airline to first secure clearance with government regulators before it can implement fleet grounding like it did last year.

In a statement, Qantas spokeswoman Olivia Wirth said the suggestion would run in counter with safety concerns especially during moments of emergency.

"To be required to undergo a time-consuming process of justification and approval prior to taking safety action is unacceptable to Qantas and contrary to basic safety management principles," Wirth was quoted by the Australian Associated Press as saying on Friday.

A senate transport committee that investigated the Qantas lockout October last year issued Thursday night its report critical of the national carrier's move, which it said had negatively impacted on the 35,000-strong Qantas workforce and their families.

The report also cited the unnecessary inconvenience suffered by tens of thousands of the Australian riding public when Qantas abruptly cancelled its flights in the middle of its labour disputes with pilot, engineers and baggage handlers.

"Qantas' decision to lock out its workforce and ground its fleet on October 29 was highly controversial ... The committee is of the view that the repercussions of this on the tourism industry, the Australian economy and Australia's international reputation should not be underestimated," the Senate committee report said.

To prevent the recurrence of such incidence, the report has recommended that any fleet grounding decision should come with the expressed approval of Civil Aviation Safety Authority (CASA), with the concurrence of the federal transport authority.

Future fleet grounding must only be prompted by safety considerations and airlines using such grounds without sufficient basis face financial fines, the Senate report said.

Qantas, however, argued that the proposal runs smack with safety concerns that the Senate investigation was trying to uphold in the first place.

"This is impractical when speed of response is essential to safe operations ... If introduced this could put the safety of the travelling public at risk," Wirth stressed.

The Qantas spokeswoman insisted that airlines should enjoy the power to unilaterally ground their fleets, which would come in handy during times of emergency.

Such glaring examples were the engine failures suffered by the A380s under Qantas' services in 2010, which the airline said ultimately saved lives owing to the timely decision of the company management.

The decisive actions taken by Qantas then would have been snagged by delays had the Senate proposal was in effect at that time, Wirth said.

Also, the same committee recommended against the passage of a proposed bill that would require Qantas to provide the same working conditions and benefits enjoyed by Australia-based cabin crews to its offshore employees.

The legislation, the Senate report said, would greatly diminish Qantas' competitiveness outside of Australia.