Qantas considers direct route from Sydney to Kangaroo Island
Qantas is looking at connecting Sydney to Kangaroo Island in a move that could lend a good visitor boost to the region.
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Summers on Kangaroo Island could get busier — and more investment flow into accommodation options — with national airline Qantas looking at putting on a direct flight from Sydney.
“We have had great success on the Adelaide-KI direct route,” chief executive Alan Joyce told The Advertiser on the sidelines of the airline’s annual meeting in Adelaide.
“This had led to us reviewing more options on that route, which also includes a direct Sydney to KI flight.
“It is early days, but the review is focused on expanding our services into KI.”
Qantas currently runs a direct flight once a week from Melbourne to Kingscote Airport over summer, while the Adelaide flight runs three to four days a week throughout the year.
Regional airline Rex runs flights every day throughout the year, including putting on more during summer.
KI Council Mayor Michael Pengilly welcomed the news.
“Anything that gets more people on the island is great for yes and we will work with the airline to help make that happen.
“If this was to transpire, it could boost the desire for more investment on accommodation on KI and that would be a good thing.”
The island is heavily dependent on tourism, with a tourism expenditure of $125 million annually and visitation in the order of 226,000 per year.
It comes weeks after ferry operator SeaLink revealed its ‘game-changer’ Glenelg to KI ferry plan, which could bring and extra 15,000 visitors to KI.
South Australian Tourism Commission CEO Rodney Harrex said a possible future service to Kangaroo Island would be “great coup” for the region.
“It would create connectivity with interstate and international visitors, which is critical for tourism growth in Kangaroo Island,” he said.
“The Melbourne-Kangaroo Island seasonal services has been positive. Seeing additional services from other states will further benefit the South Australian visitor economy.”
Mr Joyce said Qantas currently had “the biggest regional network in the country by far” and says that it is actively looking at expanding it.
In South Australia, the airline said it spent $12 million annually buying SA-made products.
“We spend $10 million on SA wines. We are probably the largest purchaser, outside of Coles and Woolworths, of SA wines and we buy some of the high quality products.”
First-quarter revenue for the airline rose 1.8 per cent to a record $4.56 billion as a 4.4 per cent jump in international revenue and strong growth at Qantas Loyalty more than offset a drop in demand for domestic leisure.
More broadly, Mr Joyce told shareholders the carrier is well placed despite business and consumer confidence falling.
“General business and consumer confidence are softer now than in the past few years. The dollar has weakened. There was a temporary spike in fuel prices. Trade wars are impacting freight demand,” Mr Joyce said.
“We are feeling the effects of all of that, as you’d expect.”
Deteriorating global trade conditions have reduced freight demand and will cut full-year profit by between $25 million and $30 million, while currency movements are set to add $25 million to non-fuel costs in the first half.
An overwhelming majority of shareholders approved the remuneration report and the grant of long-term bonuses to Mr Joyce, but there was a significant 23.6 per cent protest vote from proxies in favour of a review of the airline’s involvement in the federal government’s deportation of asylum seekers. The resolution was not put to the meeting because a special resolution to change the company’s constitution did not garner sufficient support.