Scott Morrison needs to guarantee that Australia’s two major airlines will survive the COVID-19 pandemic, in order to ensure Tasmania’s tourism sector can recover when the crisis has passed.
Without urgent and immediate action from the Government, the future for Virgin Australia is looking grim.
Federal Member for Lyons Brian Mitchell MP says the best way the Government can assist is by purchasing equity in the airline.
“I’m calling for a buy-in not a bail-out,” Mr Mitchell said.
“The Government can buy in now and, when the sector recovers, sell down its stake and recover its investment.
"This is the simplest way to give Virgin the best chance of staying in the air, saving 16,000 jobs and keeping fares competitive."
Mr Mitchell called on the Tasmanian premier and Tasmania’s federal MPs and Senators to pressure Scott Morrison to save Virgin Australia.
“Tasmania’s $1.5 billion tourism industry relies on affordable fares and frequent flights and routes,” Mr Mitchell said.
“Without Virgin, there is no competitive pressure and fares in and out of Tasmania will go up and will stay up.
“Peter Gutwein and Richard Colbeck and all their Liberal colleagues must pick up the phone and push Scott Morrison to urgently extend a lifeline to Virgin Australia.
“We cannot leave this till later. The time to act is now."