The Coalition has revealed a new plan to reduce domestic airfares, especially for the Top End. With the federal election just 10 days away, it has vowed to change laws that currently restrict foreign airlines from operating domestic flights in Australia.
If elected, the Coalition says it will implement a trial to allow overseas-based carriers to fly domestically within Australia – a practice known as cabotage – between Australia’s east coast capitals and Darwin.
It believes the strategy would help make travel more affordable for Northern Territorians.
“The Coalition has today announced a bold plan to supercharge the Northern Territory economy, deliver cheaper, more frequent flights, boost tourism and expand local trade by unlocking Darwin as Australia’s northern aviation gateway,” a joint statement by the Shadow Minister for Infrastructure, Transport and Regional Development Bridget McKenzie, the Northern Territory Chief Minister Lia Finocchiaro and other ministers reads.
Released Wednesday, the statement says that “for too long Territorians have endured some of the highest airfares and poorest aviation service levels in the country”.
“A Dutton Coalition Government will establish a two-year trial allowing international airlines to carry domestic passengers and freight to and from capital cities around Australia, removing outdated laws which have kept Darwin airfares high and restricted services,” it adds.
Senator McKenzie says “the Coalition wants to get the cost of NT flights down to boost tourism and increase options to travel to see family or do business with other states”.
“Air travel is not a luxury for the Northern Territory – it’s a necessity,” she adds.
According to the joint statement, legalising cabotage to/from Darwin and eastern Australia would bring economic gains for both the NT and the broader Aussie economy.
Such benefits could include 25,000 extra domestic and international tourists to the Territory, an estimated additional $50 million in annual visitor spending in the NT, and around $980 million in growth for the national GDP.
Member for Solomon Luke Gosling, previously floated the idea of cabotage for the Top End, but said there was no interest from foreign airlines, the ABC reported.
However, speaking to ABC Radio Darwin, Shadow Minister McKenzie said there would be demand “once we actually open that opportunity for international airlines” because “we know even the Darwin-Brisbane flight, that’s at nearly 88 per cent capacity”.
“Airlines are interested where there is demand, where they can actually make money,” she remarked.
“That’s why we’re putting it on the table to trial it here for two years and give that opportunity to international carriers, such as [those in] the Philippines, Vietnam, Malaysia, Singapore.”
KARRYON UNPACKS: While domestic Darwin flights can be pricey – sometimes in the region of $1000 for an economy seat – it’s hard to imagine overseas domiciled airlines choosing to stopover in Darwin if they can already fly directly to major east coast ports. Aussies also have more access to nonstop international flights than ever before, so it’s unlikely they’d want to swap these for indirect services, unless they were at a significantly reduced cost. So cheaper travel to/from Darwin might need to be achieved through means other than what the Coalition is proposing.
