Queensland awards Alliance subsidised Whitsundays flight contract

Virgin wants answers from Queensland after the government signed rival Alliance to operate subsidised flights from $99 to a key tourism region.

Alliance Airlines has struck a deal to operate subsidised flights between Brisbane and the Whitsundays from June 22. Picture: David Clark Photography

Brisbane-based airline Alliance has been chosen ahead of financially troubled Virgin Australia to operate taxpayer-subsidised flights between Brisbane and the Whitsundays from late June.

Queensland Premier Annastacia Palaszczuk announced the four-times a week services, starting on June 22.

The announcement came as a shock to Virgin Australia, which was keen to operate the services but had experienced difficulty engaging with the government.

“As the national carrier based in Queensland, we were disappointed not to be contacted nor considered for this flying,” said Virgin Australia CEO Paul Scurrah.

“Our crew are eager to get back flying and will be incredibly disappointed not to be included. “We would welcome contact from the Queensland Government on this.”

The Palaszczuk Government has offered $200m to keep Virgin Australia’s headquarters in Brisbane under a new owner and it was not clear if this decision could send the carrier south.

Sydney and Melbourne have both shown interest in the airline.

When questioned about Virgin Australia’s concerns, a spokesman for the Premier said the new flights were arranged by the Whitsunday Regional Council and Whitsunday Coast Airport with Alliance.

“The Queensland Government encourages and supports arrangements such as these which will generate millions of dollars and create new jobs for the region,” the spokesman said.

Alliance is predominantly a charter operator, running an all-Fokker fleet of F70s and F100s, and will fly four return services a week to the Whitsundays initially, with a view to going daily if needed.

The flights are designed to boost the Whitsundays during the mid-year break, in the absence of interstate travellers unable to visit the tourist region due to the ongoing Queensland border closure.

Alliance will offer seats on the flights from as little as $99 one way including 20kg of luggage.

Premier Annastacia Palaszczuk said she wanted to see more Queenslanders holidaying in Queensland.

“As the national carrier based in Queensland, we were disappointed not to be contacted nor considered for this flying.”

“That’s what today’s announcement is all about,” Ms Palaszczuk said.

“Tourism supports one in three jobs in the Whitsundays. We know how crucial this industry is to the livelihoods of people in this region.”

Tourism Minister Kate Jones said it would be the first time since March 28 that any flights had operated to the region, and it was hoped they would bring nearly 5300 tourists over the next 12-months.

“We know that more tourists means more cash for local businesses,” Ms Jones said.

“This will pump millions of dollars into the local economy and support local jobs.”

Whitsunday Regional Council Mayor Andrew Willcox said he was committed to working with the government to support tourism businesses that were doing it tough.

“With the Premier lifting restrictions on travel within Queensland it is important that our airport resume services,” Cr Willcox said.

“Our airport was approaching 500,000 passengers annually prior to the pandemic so it is vital this key gateway to the Whitsundays is up and running as quickly as possible.”

The flights would be subsidised by the council with funding provided by the Queensland Government, but the cost to taxpayers was not disclosed.

Alliance Airlines chief executive officer, Lee Schofield, said the airline was proud to be the first to recommence scheduled services to Whitsunday Coast Airport.

“With current travel restrictions easing we look forward to working with WCA to welcome many visitors to the Whitsunday region on our flights,” Mr Schofield said.

“Alliance Airlines are proud to be playing this important role in reawakening tourism in this beautiful part of Queensland.”

It will be the third regional destination in the Alliance network, joining Bundaberg and Gladstone.

Alliance has proven to be one of the most resilient airline operators during the pandemic, recently announcing plans to reward eligible staff with $1000 worth of shares.