State-funded airlines gain in global market after Qantas, Virgin Australia halt international flights
Some foreign carriers likely operating at a loss to maintain routes to Australia and ‘hook’ passengers, transport expert says
Qantas and Virgin Australia have halted international commercial flights after government funding for select overseas routes ended, allowing some state-funded competitors to close in on the global market.
The Australian government has subsidised Qantas and Virgin Australia flights from London, Auckland, Los Angeles and Hong Kong over the past few months, to repatriate Australians stranded by coronavirus. The flights were on a cost-recovery basis, with passenger revenue remitted to the government.