The federal government will cover the cost of Qantas and Virgin Australia operating domestic flights on a limited network to maintain air connections between capital and regional cities
The announcement comes after Virgin last week grounded all domestic flying except for a single Sydney to Melbourne return service operating six days a week. Qantas and its budget offshoot Jetstar were flying to each capital city but at a significantly reduced frequency. Its Sydney-Melbourne service had dropped to five times a week compared to 50 times a day before the pandemic took hold.
Amid a growing debate over government intervention in the hard-hit aviation industry, Mr McCormack said the investment to support a minimum network showed the government was commitment to maintaining connectivity during the health crisis.to step in to save Virgin Australia from collapsing. The country's number-two carrier have asked for a $1.4 billion loan to see it through the crisis, as it tries to restructure its crushing $5 billion debt.
The federal government has instead announced a $715 million worth of waived fees and levies for airlines. However, with carriers doing little flying it is not clear how much benefit that will deliver. Government has also pledged another $300 million to support regional air services.Melbourne / Canberra Brisbane / Cairns Sydney / Brisbane Perth / Melbourne Perth / Kalgoorlie
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