Cabinet to consider taxpayer subsidy for Virgin, Qantas domestic flights

Subsidised flights to get Australians home after two weeks in quarantine, the “least the government can do” says Labor.

Grounded Virgin Australia aircraft parked at Brisbane Airport. Picture: Darren England/AAP

Labor has backed a proposal for taxpayers to cover the cost of domestic flights saying it was “the least the government could do” so Australians could get home after two weeks in quarantine.

Federal cabinet is expected to consider the proposal from Deputy Prime Minister Michael McCormack on Tuesday, for a subsidised network of domestic services by Qantas and Virgin Australia.

Drastic cutbacks by both carriers have reduced services to almost nothing, making it hard for people returning from overseas to get home after two weeks in enforced capital city quarantine.

“We also need, of course, to transfer people around from capital city to capital city. So we’ll be looking at that,” Mr McCormack told the ABC.

“We’ll be looking at what we can do in conjunction with the airlines, who are cooperative.”

Virgin Australia is operating just one return flight a day between Melbourne and Sydney and Qantas is using only three aircraft to service a heavily pared-back domestic operation.

Instead of its usual 50 flights a day between Sydney and Melbourne, Qantas is flying just five return services a week, and operating two services a week between Sydney and Perth.

On Thursday Qantas revealed some of its domestic flights were carrying as few as “one or two passengers” which it said was “clearly not sustainable”.

Labor supported the proposal to subsidise flights but warned it would not be enough to save Virgin Australia.

Shadow transport minister Catherine King said Australians needed Scott Morrison to step up and urgently extend a lifeline to the airline.

“Arranging flights so Australians can get home after two weeks quarantine is the least this government can do,” Ms King said.

“(But) underwriting a few flights will not see Virgin survive this crisis.”

The federal government is already subsidising a number of international flight by Qantas and Virgin Australia to bring home citizens from London, Los Angeles, Hong Kong and Auckland.

On Friday, Qantas revealed the flights had attracted only a “few hundred” bookings but it would continue to operate the services as required by government.

Adding to the challenges for airlines was a hardening of the rules for crew returning from overseas.

Although pilots and flight attendants will not be subject to the same 14-day enforced quarantine as passengers on international flights, they will have to self-isolate at home or an alternative location.

The Department of Health also ordered enhanced use of personal protective equipment by crew, including masks within 1.5m of passengers and gowns and gloves to be added when cleaning.

Mr McCormack continued to avoid any commitment to Virgin Australia’s request for a $1.4bn loan facility to help it survive the coronavirus crisis.

Asked if he would recommend to cabinet an assistance package be provided to the airline, Mr McCormack said nothing had been ruled out.

“They’re having discussions with its own shareholders,” Mr McCormack said. “We’ll continue those discussions.”

He said he wanted the aviation sector to be “its best self out the other side” of the coronavirus crisis.

“I’m not going to rule anything out because I’ll continue having discussions with the airlines.”