Qantas returns fire at mayor

QANTAS has hit back at Mayor Jenny Hill after she called on residents to boycott the national carrier, saying her comments on the ongoing stoush over an airport redevelopment fee put “future investment in Townsville at risk”.

The Townsville Bulletin understands Qantas Group executive Andrew Parker yesterday wrote to Townsville City Council after Cr Hill accused Qantas of not supporting Townsville amid stalled negotiations for a fee intended to recoup the costs of a planned airport redevelopment.

The redevelopment, tipped to support 178 jobs, includes upgrades to the terminal, taxiways, runway apron facilities and core infrastructure, with Townsville Airport planning to recoup $ 40 million through a $ 3 increase to passenger charges.

Virgin Australia signed an agreement over the fee increase in September 2015 but Qantas has maintained that the cost is too much for it to pay.

The letter from Mr Parker said that Cr Hill’s comments “put services, employment and future investment in Townsville at risk”.

“While we are somewhat encouraged by a recent improvement in demand, the fact remains that domestic passenger numbers at Townsville Airport have contracted by 5.7 per cent since 2012,” it said. “The Qantas Group, like other Townsville businesses, has felt the impact of the region’s shifting demand patterns and wider economic downturn.

“To avoid any misunderstanding, the Qantas Group is at present operating services to Townsville which are commercially marginal.

“The route and demand economics do not support Townsville Airport’s proposed capital spend of over $ 40 million, which is why Queensland Airport Limited’s investors won’t fund the project out of their existing profit pool.”

In the letter Mr Parker also says the airline is “aligned with Townsville’s focus on increasing demand and expanding the tourism economy”.

“This can be better achieved through increased marketing and strategic investments in attractions to stimulate demand, rather than overcapitalising on airport infrastructure that will only drive up costs and in turn, airfares,” he wrote.

According to government statistics from the Department of Infrastructure and Regional Development, the Townsville Airport was ranked the sixth busiest in 1985 but in 2016 was ranked as number 11, one place behind Darwin and one ahead of Launceston.

Townsville Airport’s passenger numbers peaked in 2012 at 1,609,738 and last year 1,529,470 passengers passed through the airport.

Townsville Airport was unable to provide a response before deadline.