Australia to subsidize 800,000 half-price airfares for supporting its ailing tourism industry

Monday, March 15, 2021

Australia’s government will subsidize 800,000 half-price airfares as part of an A$1.2 billion ($920 million) package to support the nation’s suffering tourism industry. Stocks in the nation’s aviation and travel industries were also up.

To run from April 1 to July 31, the reduced fares are designed to help tourism-dependent regions, supporting airlines, hotels and hospitality venues, said Australia’s Prime Minister Scott Morrison. The package also includes further support for the international aviation industry, and will expand a government-backed loan program to small and medium-sized businesses.

Morrison said, the subsidized tickets program “means more jobs and investment for the tourism and aviation sectors as Australia heads towards winning our fight against Covid-19 and the restrictions that have hurt so many businesses.”
Australia’s domestic and international aviation industry has been affected largely by the pandemic, while the nation has managed to limit the waves of infections that have battered the Europe and the U.S.

The economy gathered momentum in 2021, with gross domestic product going up 3.1% in the final three months of last year from the quarter before. In spite of this, the support package would lend a helping hand to an aviation industry devastated by corona virus-related travel restrictions.

Qantas Airways Ltd., which is slashing at least 8,500 jobs, lost about A$11 billion in revenue due to the pandemic last year alone, more than half its normal annual sales. Qantas shares were up 2.9% at 10:52 a.m. in Sydney trading, while travel firm Webjet Ltd. gained 3.1%.

The national carrier said that the government package, which includes “direct support” for 7,500 Qantas employees affected by international border closures, would assist it in taking more aircraft out of storage to prepare for reopening of international borders, said Qantas Chief Executive Officer Alan Joyce.

Nationally, the reduced price tickets will be available on 57 routes in Australia. “This package for us ticks all the boxes,” Joyce said.

Smaller competitor Virgin Australia Airlines is under new ownership after collapsing in 2020.
Qantas and Virgin Australia will receive financial support from April 1 to Oct. 31 in order to maintain an agreed core international capability.

« Back to Page

• As an Indonesian volcano erupts, Australia is under tsunami alert

• River Rafting, River Cruise and Canal Tours boost water tourism

• Food and Hotel Asia Singapore 2024 to attract global hospitality leaders

• This weekend, best road trips you must take in Asia

• The Ghan is launching the best train travel experience available