Virgin in threat to exit Brisbane HQ
Virgin Australia has warned it could dump Brisbane as its HQ in Australia if it doesn’t get access to regional airports in Queensland.
The Brisbane Courier Mail reports that CEO John Borghetti is frustrated by what he sees as lack of support for the airline, which relocated with 1200 staff to Brisbane in 2000 helped by AUD11 million in state government aid.
Virgin wants to tender for several regional Queensland routes, either regulated or subsidised by the government.
QantasLink’s contracts for these routes are due to expire in March, and Virgin has been seeking to have the market deregulated to give it a chance to fly them.
But, according to media reports, the airline has been told, unofficially, that the Government’s mind is made up, and QantasLink’s contract will be extended for another two years.
Borghetti said Virgin believed deregulation would bring lower fares and deliver better access for regional communities to essential services, but he was frustrated by not getting a better hearing from the Queensland state government.
"Virgin Australia has a strong track record of bringing much-needed competition to monopoly markets," Borghetti said.
Ian Jarrett
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