Just $ 72 million from the government $ 1 According to former Qantas Chief Economist Tony Webber, 2 billion tourism rescue packages will offset airfares to pandemic-hit areas that depend on travelers as he warns that discounts may not be enough to promote travel

The government has refused to disclose how much tax money it will give Qantas and Virgin to save the jobs of 8,600 workers whose role depends on international travel. The airlines themselves are still working on key details such as: B. the amount to be paid to each employee

“It’s obviously better than nothing,” said former Qantas chief economist Tony Webber, who criticized the program’s ability to lure travelers into the air, Getty Images

Alan Joyce, Qantas CEO, told staff the package was the result of months of negotiations as travel remained subdued in the pandemic, but he could not tell the 7,500 international workers who had resigned what direct benefits they would have

“???? [The details] will be finalized shortly” ???? Mr Joyce said in the internal email The Australian Financial Review received Thursday morning

He also mentioned other support methods in the package, including paid training support to keep staff up to date for an international restart, and money to bring long-haul jets out of hibernation and ready for use. Package also includes assistance to airports and ground handling companies

The government also extended subsidies for minor domestic and regional flights until the end of September

“It is carefully targeted and recognizes the vital importance of aviation to the economy,” Mr Joyce said

Jayne Hrdlicka, CEO of Virgin Australia, issued a similar message to employees, saying that Chief Operating Officer Stuart Aggs would provide more details later on Thursday

“I know that many of you who have resigned or are working fewer hours are eager to understand the specifics of how this package can affect you”She said

Both airline bosses mentioned the new flight subsidy, which is giving the government half the cost of $ 800000 pays airfare to destinations that are normally frequented by overseas tourists

Ex-Qantas chief economist Dr Webber â ???? now lecturer at the UNSW School of Aviation â ???? questioned the value of this scheme

If you look at the average fare on a Qantas flight, it’s roughly $ 180 So if the government pays half the ticket, it’s roughly $ 90 times 800$ 000 on???? he said

This would mean the Tourism Aviation Network Support (TANS) program is approximately $ 72 million of the total rescue package

“It’s obviously better than nothing” Dr Webber said it relies on fare changes to stimulate travel, but the problem is that demand isn’t too price sensitive as it is only about 10 to 20 percent of the cost of a trip because people don’t vacation because your flight is a little cheaperâ ????

He added that the most popular vacation at the moment has been overnight stays and that these were mostly taken by travelers driving to the site, with only about a quarter of the overnight stays being flights

Dr Webber said the system would be worthless if state lines were closed again after a COVID-19 outbreak

Regional Express (REX) vice chairman John Sharp agreed with this assessment Mr. Sharp also said the scheme is “Qantas-centered” and should be changed to fix this

“For example, the TANS program subsidizes flights to Melbourne, but only if you land at Avalon Airport, which neither Rex nor Virgin fly to, and not Tullamarine”Mr. Sharp said

Mr Sharp said he hoped this was a government oversight that would be corrected soon. He also said the retention system should be checked regularly to ensure that Qantas and Virgin had used the money properly

Meanwhile, eight unions representing aviation workers wrote to Prime Minister Scott Morrison criticizing the decision not to extend the JobKeeper wage subsidy for the sector

JobKeeper is expiring later this month and despite requests from Virgin and unions to use it as an “AviationKeeper”, the government had always made it clear that it was planned to be phased out

???? There is no point in stopping this support at the final hurdle and it is a waste of the hundreds of millions of dollars that have been spent so farâ ????

The letter was signed by the Transport Workers Union, the Association of Virgin Australia Pilots, the Australian Licensed Aircraft Engineers Association and the Flight Attendants Association of Australia

Ms. Hrdlicka had warned that Virgin would have to cut more jobs without a JobKeeper extension. It has already eliminated 3,000 employees? a third of his workforce? to transform itself back into a medium-sized airline after voluntary management and plans to support 6000 jobs when they are fully functional

However, a Virgin spokeswoman said the support announced on Thursday would be sufficient to avoid further downsizing, provided state borders remain open

Failed to make the same commitment, Qantas said that while it was about keeping as many employees as possible, uncertainty still plagues the sector

Woodside Petroleum has entered into discussions with gas infrastructure owners and financial investors to purchase a stake in the development of Pluto Train 2 in Western Australia

The hunt for whoever holds the bags at Greensill Capital and the GFG Alliance is on

Vocus applicants MIRA and Aware Super set up three investment banks to fund their $ 4, 6 billion Vocus bid

Cheap flights

World news – AU – Cheap flights Australia: Inexpensive airfares worth 72 million USD ????

Source: https://www.afr.com/companies/transport/cut-price-airfares-worth-72m-20210311-p579p0