Freight grants help OS airlines

Qantas pilots have questioned why Australia is paying foreign carriers millions to carry airfreight out of the country.

Qantas has been using A330 passenger aircraft to do freight missions between Australia and Shanghai.

Qantas pilots have questioned the payment of millions of dollars of federal government grants to foreign airlines to carry Australian produce overseas.

The federal budget provided an additional $317.1m for the extension of the International Freight Assistance Mechanism (IFAM) until June 30.

Already more than $350m has been spent since April to set up the scheme and subsidise flights to help exporters disadvantaged by the lack of scheduled international services.

Before the COVID-19 crisis struck and international borders were closed, commercial flights would carry tonnes of produce in the bellies of aircraft at a significantly cheaper cost than dedicated airfreighters.

In the latest round of payments dated October 1 to 10, Qantas scored $40m, while $4.6m went to United Airlines, Air New Zealand received $3.6m and $2m went to Cathay Pacific.

Singapore Airlines and Etihad Airways collected more than $1m each, and Japan Airlines and Emirates scored $570,000 and $240,000 respectively.

Virgin Australia was initially involved in the scheme, operating about 60 flights between Los Angeles and Australia, but has since had to withdraw because the airline no longer has an aircraft suitable for the distance.

Australian and International Pilots Association acting president Shane Loney said Qantas had the capacity and people to do all the flying needed under the IFAM.

“For the Australian economy, the Australian people, we’re much better off having Australian carriers flying that freight and doing that work,” Captain Loney said.

“I think there’s little to no impediment to Qantas being able to do that work; it’s just a matter of whether the government is looking for the cheapest contract.”

With hundreds of pilots stood down due to the suspension of international passenger flights by Qantas, Captain Loney said any flying would help them maintain their currency, so they could immediately return to work when more regular services resumed.

“Even if Qantas is a bit more expensive than other airlines, that extra money paid to Qantas stays in Australia — it’s spent by the workers involved,” he said.

“That money will go around and around in the economic cycle so it’s not as simple as who is cheapest — it’s where does that money do the most good.”

Qantas declined to comment on AIPA’s position, but a spokeswoman said the federal government’s support through underwriting passenger and freight services had “allowed the airline to maintain critical transport links and get more of our people back to work”.

Federal Tourism and Trade Minister Simon Birmingham said the IFAM program had been “a lifesaver for Australian exporters to get their high quality produce into overseas markets”.

“The program has also supported airlines to keep more planes in the air,” Senator Birmingham said.

Data for the period until September 30 shows Qantas received 68.3 per cent of the funding under the scheme or $87.9m and Virgin Australia 14 per cent, or $18.6m.

Japan Airlines was the next biggest beneficiary, receiving $7.7m, followed by Cathay Pacific ($4.3m), Singapore Airlines ($4.2m) and Emirates ($2.9m).

Senator Birminghan said he was pleased Australian carriers had been able to win the lion’s share of the contracts under IFAM.

“Our Australian airlines are working through an incredibly tough operating environment,” he said.

Freight flights typically carry only pilots, and no cabin crew.