Bailey insists on airline study
A report in The Age today says that Federal Tourism Minister Fran Bailey has blocked attempts by Qantas to derail a report assessing the economic benefits of opening Australia up to more foreign airlines.With pressure growing for the Government to scale back its protection of Qantas on international routes, Ms Bailey has intervened to ensure that a study goes ahead to examine the impact on Australia’s tourism industry of increased airline capacity from the Middle East.
There are suggestions that the study, if favourable towards increased competition, could add pressure on the Government to follow Canada’s lead and adopt an “open skies” policy.
The commissioning of the report was recommended at a meeting of government, tourism industry, airline and airport industry representatives on November 3.
Members of the forum, the National Tourism and Aviation Advisory Committee, include the heads of state tourism commissions, Qantas, Virgin Blue, the federal departments of tourism and transport, major international airports and tourism lobby groups.
But following objections from the Department of Transport, Qantas and Virgin Blue, the commissioned report appeared to have been derailed until Ms Bailey stepped in last month.
One source close to Qantas said the national carrier and other doubters questioned the merits of commissioning an expensive study rather than just debating the issue.
The commissioning of the study comes after Federal Transport Minister Mark Vaile confirmed the Abu Dhabi-based Etihad had been granted rights to daily flights into Australia and Emirates also expected to hold talks with Mr Vaile in March to double its flights into Australia to 98 flights a week by 2014.
Report by The Mole
John Alwyn-Jones
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