Queensland State Development Minister Cameron Dick said Australia must have two airlines to support tourism, jobs, and regional investment.
“Virgin benefits regional communities in our states. It benefits our tourism industry which is in such a terrible state at the moment,” he told reporters on April 18.
“This commitment is a strong commitment from our government—from Queensland—to ensure the two airline policy can continue,” said Dick.
Dick added that airfares and freight costs would rise without two national airlines, so propping up Virgin is worth it, despite the risk that it could be bought out by a foreign company after the bailout.
The Queensland government’s $200 million came with conditions on debt restructuring, and with shareholders and bondholders doing their bit. The company’s headquarters will also need to remain in the state.
Former Queensland Labor premier Peter Beattie originally lured Virgin to set up headquarters in Brisbane, Queensland’s capital city with an $11 million incentive in 2000 ($18.5 million adjusted for inflation).
Tourism Hotspot Crushed
The chief executive officer of Tourism Tropical North Queensland (TTNQ) said a competitive aviation industry is important for Cairns, which receives over half of its visitors via the airport.Cairns has been one of the hardest-hit regions amid the pandemic.
“We have seen over 2,650 jobs lost to date and more than 5,000 people stood down in Tropical North Queensland,” Olsen told The Epoch Times in an emailed statement sent via a spokesperson.
Another 11,000 locals are expected to be out of work by the end of the year.
Virgin Employees Plea
An aircraft engineer has begged Scott Morrison to help Virgin Australia by providing it with a federal reserve loan, afraid that he and other employees will lose everything if the airline falls over.In a video posted on Twitter, Andy Curtis, who has been an aircraft engineer for over 30 years—19 of them with Virgin Australia—said that while the decision to close Australia’s international borders was the right thing to do, it means that the airline is under threat of collapse.
“This decision has put the entire aviation industry into a coma. ... We need you, Scott Morrison, to help us out,” he said.