Tourism backing airlines

QUEENSLAND’S tourism sector would shed tens of thousands of jobs and lose any hope of recovery after the coronavirus pandemic if Virgin Australia collapsed, according to industry leaders.

Tourism bosses are pushing the Morrison Government to support Virgin’s plea for a $1.4 billion bailout, warning the airline’s failure would send ticket prices skyrocketing and devastate operators throughout the state.

Queensland Tourism Industry Council chief executive Daniel Gschwind said the threat to airlines during the pandemic was a “threat to the nation, its economy, its community and its future”.

“If Virgin goes under, tens of thousands of jobs will be lost in the tourism industry as a consequence,” he said.

“It would destroy any hope of recovery for the tourism industry in places like Townsville, Cairns, Rockhampton, Mackay, the Whitsundays and right around the regions.

“The Federal Government must take immediate action to ensure we will keep two strong domestic competitors and support Virgin Airlines Australia,” he said.

Brisbane Airport has been repurposed to accommodate up to 100 grounded aircraft – including Virgin planes – at no cost, in response to coronavirus travel restrictions.

Queensland Tourism Industry Development Minister Kate Jones said it was vital everything possible was done to ensure Virgin and Qantas survived the coronavirus crisis.

“Everyone in the tourism industry who lived through the collapse of Ansett knows that having competition in our skies will help the industry rebuild faster once we get through this,” she said.

The Federal Government has already rejected bailing out Virgin, but said it was committed to having two competitive domestic airlines. It also announced more than $1 billion to support the aviation sector during the pandemic.

Finance Minister Mathias Cormann said all airlines in Australia would also have access to the $130 billion JobKeeper program. “The Federal Government continues to speak with aviation industry stakeholders daily, listening to their representations and making judgments on what else may appropriately be done to support them.”

Tourism Tropical North Queensland chief executive Mark Olsen said air access was the economic lifeblood of Cairns and the Great Barrier Reef with more than 50 per cent of all visitors arriving through the airport.

“When there is competition in aviation it drives investment in the region, hotels, agricultural exports, business growth, education, and much more,” he said. “It is essential that we come out the other side of the COVID-19 crisis with strong domestic airlines driving competitiveness and innovation.”

Capricorn Enterprise chief executive Mary Carroll said the region needed Virgin to survive to ensure the tourism sector could “get back on its feet”.