Townsville Enterprise 100% supports the critical need for competition, which is integral for regional aviation and ensuring affordable and efficient air services for our community.
We have seen what happens when a carrier has a monopoly position on a route and it's detriment to communities like North Queensland. The arrival of Virgin Australia in 2000 and Jetstar in 2005 significantly increased affordable travel for North Queenslanders with Townsville the first regional port Virgin operated to.
Regional communities need certainty around this issue. It will be a critical element of our recovery and whatever the final outcome looks like it has to include at least two airlines.
Ideally, the major foreign state-owned enterprise shareholders don’t simply look for an Australian taxpayer handout alone and we urge them to support their investment in Virgin Airlines as well.
It's equally important that if tax payer funds are provided or regulations are relaxed, it should come with an obligation to better serve the regions, provide affordable regional services, and more local jobs.
We acknowledge the Federal Government's support announced to date towards the aviation industry during the COVID-19 crisis. This includes a $715 million package waiving fuel excise and government charges backdated to 1 February 2020, $198 million to ensure the continued operation of essential flights into regional communities and $100 million to provide direct financial support to smaller regional airline. Whilst we understand not every business can be saved, the importance of avoiding an airline monopoly across the nation, and particularly for regional communities, cannot be overstated.
We urge the Federal Government, all airlines and their major shareholders to come to an appropriate agreement that shares the economic load – just as our local businesses have to share the economic load.
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