Qantas CEO Alan Joyce hits out at premiers over border closures

Qantas’ CEO says that despite state border closures causing havoc on Australia’s domestic sector, three flights are performing better than ever.

Qantas Group CEO Alan Joyce has hit out at state and territory leaders for keeping borders closed, saying there should be a “national framework” in place to get Australia’s domestic tourism moving again.

Speaking to media on Thursday for the airline’s FY20 results, Mr Joyce said the border restrictions had caused “upheaval and uncertainty” for customers, and also for the airline to recover in the domestic market.

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Qantas CEO Alan Joyce said there should be clarity around when a border should close. Picture: Cameron Spencer/Getty Images

“We’ve been hit by another set of border closures,” he said.

“It shows how important it is to have a national framework for domestic borders – so that there is clarity and consistency. At the moment, there are no rules around how borders are going to close and going to open.

“Nobody has an issue with the international borders being closed – that’s protected Australia. Nobody’s had an issue with the borders to Victoria being closed. But it’s very clear that we don’t have clear guidelines for when the borders will open, when they will close.”

But despite Mr Joyce claiming the ongoing state and territory border closures appears to be “politically driven”, he noted three intrastate flights were booming amid the pandemic.

With the airline operating domestic routes at 20 per cent compared to pre-COVID levels, Mr Joyce said some flights were operating at “fascinating” levels given the current climate.

“We have routes like Brisbane to Cairns which is actually the top route in Qantas’ network,” he said.

“The traffic on that [route] is bigger than the traffic we had pre-COVID-19.

Perth to Broome is actually ahead of what it was pre-COVID-19. Sydney Ballina is ahead of what it was pre-COVID-19.

“What is uplifting is we know when the borders open up and people can travel, there is huge demand pent up for travel.”

Qantas CEO Alan Joyce said border closures seem to be ‘politically driven’. Picture: AAP Image/Bianca De Marchi.

Speaking to Sky News following the briefing, Mr Joyce said the country’s state and territory border closures “politically driven”.

“When you have states with zero cases closing their borders to states with zero cases, there doesn’t seem to be any medical reason or health reason or any logical reason for those to remain closed,” Mr Joyce said in an interview with Sky Business Editor Ticky Fullerton.

“What we are after is a framework that is very clear,” he said.

“When do borders close? Because they may have to close again in the future.

“When do they open? Based on the scientific information that’s available.

“So we have clarity for our people, for the tourism industry for the travelling public.

“And at the moment it doesn’t seem to be medically or scientifically based.

“It seems to be more politically driven.”

Qantas’ domestic fleet is performing at 20 per cent of pre-COVID flights. Picture: James Gourley/AAP

In a trading update posted on Thursday, which covered four months during the pandemic, the nation’s largest airline revealed an almost $2 billion loss for the 12 months ending June 30.

The airline said the results reflected a strong first half of the year, followed by a “total collapse in travel and demand”.

Mr Joyce said the recovery for Australia’s domestic market, which plummeted by $11 billion in April and May, relied on consistency with border closures across the country in order to recover. He said the “blanket comments” made by some state and territory leaders about borders opening after Christmas was damaging to the recovery of the overall industry.

“If it’s safe to do it, (a border) should be opened,” he said, noting states with no cases shouldn’t be locked away from others in a similar position.

“We’re not saying ‘open the borders’ blankly. We’re saying, ‘Let’s have the rules to say what would you have to see in order for those borders to be open.’ So, we all have clarity and know what’s the right thing to do.”

Qantas CEO Alan Joyce has called on National Cabinet to step in and regulate how and when borders open and close. Picture: Bianca De Marchi/AAP

Earlier this week, Tasmania Premier Peter Gutwein pointed to a state reopening not likely until December, while the Northern Territory Chief Minister Michael Gunner suggested possible closures until 2022.

Victoria is currently banned from any interstate travel, while Queensland has its border closed to both NSW and Victoria. The Northern Territory also has border closures in place for NSW, Victoria and Brisbane in Queensland.

“We would be very happy, and I think a lot of the public would be very happy, if there were a clear set of rules set by the National Cabinet and the medical advice that they receive to understand why borders are closed and when they will open,” he said.

“We get dates from different states which are different from each state and there seems to be no reference to the level of cases that we see. Surely, (case numbers) should be the driver. “Surely that should be what is determining (the border closure) and the medical advice should be that determinant.”

The financial update comes after a tough year for the airline, announcing in June it will slash 6000 jobs from its 29,000 workforce.

In addition to the job cuts, the national carrier will stand down 15,000 workers for at least the rest of the year – part of a three-year recovery plan to speed its recovery from the pandemic.