Former Qantas Chief Executive and Board Member, Geoff Dixon, says he’s concerned an open airs plan for the Top End could impact local airlines.
Describing it as a ‘step too far’, he warned that opening air links in the Northern Territory to foreign airlines would ‘undermine’ Aussie carriers, who are currently doing all the hard work.
The plan, which will be considered by the cabinet over the next few weeks, would see the removal of cabotage in northern Australia, the Sydney Morning Herald reported.
Dixon says removing cabotage is a way of ‘dumping’ Australian airlines.
Cabotage rules prevent foreign airlines from flying domestically and picking up domestic passengers.
Mr Dixon said removing restriction on cabotage, even if it is limited to the northern part of the country, is a form of ‘dumping’ our airlines.
“No other country allows cabotage, and for good reason.”
Geoff Dixon, Former Qantas Chief Executive and Board Member
He added that it also risks future requests to extend the relaxed rules to other parts of the country.
“Saying it will be restricted to northern Australia is the thin edge of the wedge. Someone will want to extend it [to air routes in other parts of the country] and that would be very counterproductive to the Australian industry, which is very competitive at the moment.”
Geoff Dixon, Former Qantas Chief Executive and Board Member
Airlines pegged to take advantage of the removal of cabotage are believed to be Southeast Asia airlines such as AirAsia and Scoot.
According to the Sydney Morning Herald, Trade Minister Andrew Robb and Treasurer Joe Hockey are among the supporters of the proposal.
Scoot is believed to be among the airlines looking to fly domestic in north Australia.
They believe it will spur economic development to the northern part of the country by offering additional services.
However, Federal Transport Minister Warren Truss believes it will have consequences to the local aviation industry.
