By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Reading: Government Subsidy Covering Domestic Flights for Virgin Australia and Qantas
Share
Sign In
Notification Show More
Font ResizerAa
Font ResizerAa
Travel Radar - Aviation NewsTravel Radar - Aviation News
  • Breaking News
  • Aviation
    • Aircraft
    • Airlines
    • Airshow & Events
    • Careers
    • Manufacturing
  • Travel
    • Airports
    • Points & Loyalty
    • Technology
    • Trip Reviews
  • Newsletters
Signin Sign In
Follow US
Copyright © Travel Radar Media Ltd. 2025 | All Rights Reserved
Travel Radar - Aviation News > News > Government Subsidy Covering Domestic Flights for Virgin Australia and Qantas

Government Subsidy Covering Domestic Flights for Virgin Australia and Qantas

Travel Radar
Last updated: 7 January 2021 17:02
By Travel Radar Staff
4 Min Read
Share
Virgin Australia and Qantas may be receiving a government subsidy. ©Rob Finlayson
SHARE
Virgin Australia and Qantas may be receiving a government subsidy. Source: Rob Finlayson.

The Australian government is currently discussing the potential for subsidies for domestic flights with airlines, including Virgin Australia and Qantas. To subsidise the routes would mean for the government to financially support the airlines and cover the costs involved.

Deputy Prime Minister Michael McCormack has stated that he spent the Easter weekend opening negotiations with both bosses at Qantas and Virgin Australia, following the decision for Virgin Australia to suspend all domestic flights apart from a single daily scheduled return route between Sydney and Melbourne.

Michael McCormack has stated that the government has opened negotiations with Qantas and Virgin Australia. Source: Lukas Coch, AAP

“We also need, of course, to transfer people around from capital city to capital city. So, we’ll be looking at that,” McCormack shared with the ABC. “We’ll be looking at what we can do in conjunction with the airlines, who are cooperative.”

The benefit of a government subsidy for airline domestic routes

The subsidisation of domestic flights would mean that regional centres would remain connected and returning Australians would be able to return to their home cities. The subsidies would also boost the Australian aviation sector, which is already receiving massive financial blows.

So far, airlines have been unwilling to run ghost routes due to the obvious lack of profit and potential COVID-19 exposure to the crew onboard from returning travellers.

With the added persuasion of government support, these routes may be closer to reality than imagined.

While still a risk, potential COVID-19 exposure for the crew onboard would be unlikely to be a concern as those on the flights would have already undergone 14 days of government-enforced quarantine prior to boarding the aircraft.

Returning Australian travellers will have already been in a 14-day quarantine. Source: Getty

Who will receive it first?

The first point of action would be to reopen closed airports and any necessary major routes between cities, supporting airlines with the ability to provide these routes the best, first.

The airlines most likely to receive the subsidies would be Virgin Australia and Qantas. Virgin Australia is likely to be first in for the subsidy because of the thousands of employees they have had to stand down, and Qantas would likely be next in line, with a vast fleet of Boeing 737 aircrafts ready to launch at any given moment.

Having already tried and failed to secure a $1.4 billion government loan, there are grim predications that Virgin Australia may not survive the massive blow made on the Australian aviation sector in wake of COVID-19. A government subsidy, therefore, would be a welcome development for all involved.

You Might Also Like

Tracking Global Tournaments: How Esports Events Are Shaping Travel Trends for a New Generation of Flyers
Wizz Air CEO Under Investigation After Concerning Comments
British Airways Creates Links From Belfast City Airport
EU Approves Lufthansa’s Proposed Takeover of ITA
Turkish Airlines Marks Milestone as Triple Runway Operations Launch at iGA Istanbul Airport
Share This Article
Facebook Twitter Email Copy Link
What’s your thoughts?
Love0
Sad0
Happy0
Angry0
Travel Radar
ByTravel Radar Staff
Follow:
Articles from guest contributors wishing to remain anonymous are credited to this account. Want to contribute to Travel Radar either in-name, or anonymously? Get in touch: [email protected]
Previous Article Norwegian Staff Furloughed Amidst Coronavirus Crisis
Next Article Cathay Pacific involved in collision at Hong Kong International
Subscribe
Login
Notify of
guest

guest

1 Comment
Oldest
Newest Upvoted
Inline Feedbacks
View all comments
Rowan
Rowan
4 years ago

Very Nice and interesting post. I would share this Information with Others.

0
Reply

Stay Connected

FacebookLike
TwitterFollow
InstagramFollow
YoutubeSubscribe

Trending News

Edinburgh Airport © Thomas Nugent
Scotland’s Airspace Set for Major Flight Path Overhaul
Airline Economics Airports Aviation Did You Know Route Development Travel
Representative from Cathay Pacific and Airbus signing the joint investment agreement.
Cathay and Airbus Signs Joint SAF Investment Deal
Airline Economics Airlines Aviation
Air New Zealand
IATA Launches the Integrated Sustainability Program
Airline Economics Airlines Aviation
United Airlines Aircraft
United Airlines Flight Diverted Due to Cockpit Windshield Crack
Aircraft Aviation Breaking News
Illustration of a passport and approved visa documents symbolising international travel under the US airlines gender marker rule.
US Airlines Gender Marker Rule Takes Effect for International Flights
Airlines Aviation Travel
//

Travel Radar is the leading digital hub for all things aviation and air-travel. Discover our latest aviation news, aviation data, insight and analysis.

Discover

  • Latest News
  • Subscribe
  • Weekly Digest
  • Contact Us
  • Privacy Policy
  • About Us
  • Advertising
  • Media Coverage
  • Press & Events
  • Join Our Team
  • Our Brands

Signup to our Newsletter!

And get the latest aviation news via our weekly news digest!

© Travel Radar Media Ltd. 2015-2025 | ISSN #2635-0696 | Trademark #UK00003579704
wpDiscuz
adbanner
Welcome to the TR Community!

Sign in to your account

Not a member? Sign Up