Coalition promises more domestic flights out of Darwin despite low interest from airlines

International airlines will be allowed to fly domestic services from Darwin to other capitals under a Coalition plan to unlock Australia’s northern gateway – but will they want to?

International airlines would be able to operate domestic flights from Darwin under a Dutton government, with the Coalition promising a two-year trial of cabotage to deliver more frequent services at better prices than what is currently available.

If elected, shadow transport minister Bridget McKenzie said outdated laws restricting aviation activity in Darwin would be removed, to help unlock Australia’s northern gateway.

The move would mean flights into Darwin from overseas would be able to pick up domestic passengers and freight at the airport, and continue on to cities such as Sydney, Melbourne and Brisbane.

Since the Covid pandemic, Darwin Airport has dropped out of Australia’s top ten gateways, with annual passenger numbers falling from 1.73m in 2019, to 1.61m in the year to January.

Senator McKenzie said for too long Territorians had endured the highest airfares and poorest aviation service levels in the country, and accused the Albanese Government of protecting major airlines by failing to act.

“Air travel is not a luxury for the Northern Territory – it’s a necessity,” said Senator McKenzie.

“This policy is a practical, strategic step to fix what Labor has failed to address: connectivity, competition, and opportunity for the Top End.”

Senator Bridget McKenzie wants international airlines to operate domestic services from Darwin to improve frequency and put downward pressure on fares. Picture: NewsWire / Thomas Lisson

However international airlines have not expressed interest in operating domestic services in Australia, a position that was not expected to change.

Executive director of the Board of Airline Representatives of Australia, Stephen Pearse, confirmed the position of international carriers remained that cabotage presented logistic and economic challenges.

“BARA does not perceive cabotage as an effective solution for increasing domestic aviation competition,” said Mr Pearse whose members include Singapore Airlines, Qatar Airways and Air New Zealand.

“More open aviation bilateral agreements would provide direct benefits to the economy and for consumers, regardless of whether those services are provided by international or Australian-based carriers.”

The Aviation White Paper released by Transport Minister Catherine King last year, concluded that any requests from airlines should continue to be dealt with on a “case-by-case” basis.

“Submissions to the Aviation White Paper suggest there is little interest from international carriers to operate domestic flights within Australia,” said the paper.

“The practicalities, logistics, operating costs associated with taking off and landing at multiple airports, transit arrangements and handling a potential mix of domestic and international passengers are likely to make the cabotage proposition less attractive to international airlines.”

Qantas and Virgin Australia are both fiercely opposed to cabotage, saying it would destabilise Australia’s aviation market, and put the local industry out of step with other jurisdictions.

The airlines’ submissions to the Aviation White Paper released last year, said there “were no consumer or competition benefits” from cabotage, only “potential safety compliance risks and negative implications for airport charges”.

“Cabotage concessions would encourage foreign international airlines to cherry pick high-density trunk routes by adding marginally-costed extra sectors to existing international services and would effectively remove incentives for foreign airlines contemplating establishing as fully-fledged domestic airlines,” said the Qantas submission.

Virgin Australia warned of the risks to the “longer-term employment of Australian workers, their wages and the sustainability of Australian airlines”.

The Coalition believes allowing flights out of Darwin would deliver more tourists to the Top End to enjoy attractions such as Crocosaurus Cove. Picture: Jenni Collier

But Senator McKenzie said they estimated that allowing international airlines to carry domestic passengers from Darwin would deliver “widespread and lasting economic benefits” including 25,000 additional tourists to the NT, and $209m growth in export revenue.

It was also estimated the move would support 35 full-time jobs within the Territory, and create 355 new jobs across Australia.

Northern Territory chief minister Lia Finocchiaro said her government supported looking at all measures aimed at making it cheaper for Territorians and their loved ones to fly.

Shadow minister for indigenous Australians Jacinta Nampijinpa-Price said as a lifelong Territorian, she knew first-hand the burden of unfairly high airfares residents had to bear to stay connected to family and friends in their own country.

“Territorians deserve a sustainable solution, and this announcement is evidence of the Coalition’s commitment to delivering exactly that for the benefit of all Territorians,” said Senator Nampijinpa-Price.

Originally published as Coalition promises more domestic flights out of Darwin despite low interest from airlines