Govt. of Australia to subsidize Virgin & Qantas domestic flights
Category: #business  By Nikita Chaurasia  Date: 2020-04-13
  • share
  • Twitter
  • Facebook
  • LinkedIn

Govt. of Australia to subsidize Virgin & Qantas domestic flights

Amidst the effects of coronavirus and its impact on the national economy, the Australian government has planned to underwrite domestic flights operated by Virgin Australia and Qantas. Sources claim that the move would help the government to regulate air links amongst capital cities as the country faces a sharp cut in capacity by airplane carriers.

Reportedly, Virgin had grounded all its domestic flights, except for a single return service from Sydney to Melbourne that operates six days a week. As for Qantas, it remains operational for each capital city along with its budget offshoot Jetstar, however, at a substantially lowered frequency caused by travel restrictions imposed to curb the spread of coronavirus.

Speaking on the move, Michael McCormack, Australia’s Deputy Prime Minister and Federal Transport Minister, said that the authorities are coordinating with both Qantas and Virgin regarding domestic flights funding so that the routes between capital cities remain open.

The government needs to transport people from one capital city to another. These people mainly include those passengers who return from international flights to Australia that are forced to immediately go into quarantine for the next 14 days before returning back to their home city, said McCormack.

Reports claim that federal authorities have already given Virgin and Qantas permission to relaunch a limited international network that intends to fly stranded Australians back home. Evidently, the carriers would run 13 flights per week from Los Angeles, London, Auckland, and Hong Kong.

Apparently, placing more aircrafts on the runway, ready to fly, could massively boost the country's two major airlines that are currently going through a tough financial phase due to the heavily imposed travel restrictions placed to limit the spread of the coronavirus.

Incidentally, Qantas is also facing an allegation from its staff, accusing the company of failing to provide basic protective gadgets that could help protect them combat COVID19. Employees are looking to file a class action suit on the company, as over 59 employees tested positive for COVID19 along with some of their family members.

Source Credit: https://www.theage.com.au/business/companies/government-considers-subsidising-qantas-and-virgin-domestic-flights-20200413-p54jb8.html

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Nikita Chaurasia    

Nikita Chaurasia

Having always been daft at wordplay, Nikita Chaurasia, post the completion of post-graduation, commenced her journey into the content generation cosmos. Endowed with a professional MBA degree in Advertising and Public Relations, Nikita strives to integrate her creativ...

Read More

More News By Nikita Chaurasia

Emirates could slash 30,000 jobs to lower cost during COVID-19 crisis
Emirates could slash 30,000 jobs to lower cost during COVID-19 crisis
By Nikita Chaurasia

Emirates Group has reportedly been planning to lay off around 30,000 jobs in order to lower the cost amid the pandemic outbreak, that will soon bring the total number of employees working by nearly 30% from over 105,000 close to March-end. Apparentl...

Apple acquires live event recording and VR broadcaster NextVR
Apple acquires live event recording and VR broadcaster NextVR
By Nikita Chaurasia

Apple has recently confirmed that it has acquired NextVR, which is a virtual reality startup that specializes in recording live events such as sports matches and concerts for  VR experience. The announcement made by the company came after the pu...

Grant worth $6mn introduced in Singapore to support FinTech companies
Grant worth $6mn introduced in Singapore to support FinTech companies
By Nikita Chaurasia

The recent coronavirus pandemic has largely affected umpteen businesses globally. In a bid to help Fintech companies meet their day-to-day expenses, the Monetary Authority of Singapore (MAS), has established the FinTech Solidarity Grant that would pr...