Domestic carriers have a moral obligation to service the NT: Hospitality NT boss

AUSTRALIA’S domestic airlines have a ‘moral obligation’ to maintain their services in the Northern Territory, Hospitality NT boss Des Crowe says

Virgin Australia is conducting a national review of its flights with an eye to axing unprofitable routes. Picture: AAP

AUSTRALIA’S domestic airlines have a “moral obligation” to maintain their services in the Northern Territory, Hospitality NT boss Des Crowe says.

Virgin Australia is conducting a national review of its flights with an eye to axing unprofitable routes.

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Mr Crowe said the domestic airlines needed to maintain NT services or allow international carriers to step in.

“If they don’t want to (continue NT services) because the Sydney to Melbourne milk run is more profitable, they should get out of the way of cabotage and allow Darwin to engage with our northern neighbours to secure flights interstate at prices Territorians deserve,” he said.

He said domestic carriers’ current models weren’t sustainable with the NT’s current population. The population would need to double to allow prices to fall and services to expand.

“If they want to provide services in the NT then they should be leading discussions on packaging deals with accommodation hotels to promote such great NT events planned like Bruce Munro’s Tropical Lights,” he said.

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The review came after the embattled Virgin Australia airline announced a seventh consecutive annual deficit.

Virgin Australia posted a $315.4 million net loss for the 2019 financial year, its third largest loss on record.