‘Qantas package’ not enough to save jobs say tourism leaders and unions

Airlines say $1.2bn support package is fantastic news with 800,000 discounted fares on offer. Tourism chiefs disagree.

Virgin Australia is hopeful the industry support package will get more employees back to work. From L to R. Nico Porter (CS), Bianca Yates, Captain Paul Anderson, Delia Taylor and Cindy Donaghy from guest services. Picture: John Feder

Regional Express airline has branded the federal government’s aviation support package as a “Qantas bailout” that will advantage the country’s biggest carrier at the expense of others.

The criticism by Rex deputy chairman John Sharp came as tourism industry leaders voiced their disappointment in the package, which offered half-price airfares to 13 destinations around the country and cheap loans to operators.

Qantas and Virgin Australia both welcomed the $1.2bn lifeline, designed to stimulate domestic travel between the states and territories and help the airlines retain skilled workers.

About 800,000 half-price fares will be offered in the next four months, including 550,000 on Qantas and Jetstar flights — or 32,000 seats a week.

The cheap seats are on flights to regional destinations such as Cairns, the Sunshine Coast, Broome, Alice Springs and Launceston and will be available for purchase on the airlines’ websites from April 1 for travel from May 1.

Rex will receive some benefit from the package through the extension of the regional aviation network scheme, but Mr Sharp said it was predominantly designed to “bail out Qantas” which recently posted a $1.47bn half year loss.

“It’s so obviously distorted towards Qantas and if you look at the routes included in the half-price offer, one of them is Avalon airport,” Mr Sharp said.

“Rex and Virgin don’t fly to Avalon, so if you’re flying Sydney to Melbourne, you’re going to go via Avalon and pay half price. That means Virgin and Rex won’t get the 50 per cent discount on what is the biggest. most profitable air route.”

He questioned how the “half-price” destinations were decided, in the place of struggling towns such as Broken Hill and Coober Pedy. “They are way beyond where people are prepared to drive. Air travel is really the only way tourists will go to these ­places and they would’ve benefited enormously from half-price fares,” he said.

Virgin Australia chief Jayne Hrdlicka was adamant the package would benefit not only airlines but “all Australians” by delivering an immeasurable economic impact.

“This is a once in a generation event that is going to give the entire tourism industry supply chain a significant boost, which it desperately needs,” Ms Hrdlicka said.

“We have so many amazing tourism destinations right here in Australia, and this program enables irresistible prices that will get Australians out exploring the multitude of historically relevant, interesting and beautiful places we are lucky enough to have in our domestic backyard.”

Qantas Group chief Alan Joyce joined Scott Morrison to announce the package in Sydney on Thursday morning, declaring the assistance “fantastic news”.

He said with the vaccine rollout under way, it was the perfect time to provide stimulus for the industry, and get people travelling domestically again.

Mr Joyce insisted the government support for employees was “not a subsidy for Qantas” and would go directly to employees to help them meet their cost of living while waiting for inter­national flying to return.

“In total, this package is a lifeline for broader travel and tourism sector in Australia, just as it’s trying to get back on its feet,” he said.

Virgin CEO Jayne Hrdlicka said the program offers “irresistible” ticket prices to get Australians flying. Picture: Sarah Marshall