Wednesday, December 12, 2012

Virgin denies it may ditch Qld base - ABC Online


Updated December 13, 2012 13:35:12


Virgin Australia has denied reports it is planning to move its national headquarters out of Brisbane.


The airline says it is frustrated over negotiations with the Queensland Government to fly to more regional centres.


Many regional routes are controlled and, in some cases, subsidised by the State Government.


Virgin Australia is currently locked out of those routes, but contracts with existing carriers expire in March.


The company says it has been told the State Government has decided not to open up some flight routes through regional Queensland and instead extend exclusive contracts for some airlines.


Deputy Premier Jeff Seeney says he has asked for a meeting with Virgin.


Mr Seeney says it is appropriate restricted and subsidised routes continue in some remote areas.


"That's the case to the islands off the tip of the Cape and places like that," he said.


"But some of these routes like from Cairns to Weipa [and] the one from Brisbane to Roma - the numbers have grown to such an extent where Virgin is saying we want an opportunity to compete in that market.


"I think that's a legitimate claim and something that we should be talking to Virgin about."


Toowoomba and Surat Basin Enterprise spokesman Shane Charles says more competition on the Brisbane to Roma route is essential.


"The decision here is a pretty easy one from our point of view - that flights need to be increased so that residents through the region have greater access," he said.


Topics: air-transport, activism-and-lobbying, travel-and-tourism, agribusiness, community-development, brisbane-4000, cairns-4870, bundaberg-4670, gladstone-4680, longreach-4730, mackay-4740, maroochydore-4558, mount-isa-4825, rockhampton-4700, toowoomba-4350, townsville-4810


First posted December 13, 2012 11:14:39



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