Keep Virgin Australia In The Skies

The issue

Dear Prime Minister Scott Morrison, 

In Australia, we are lucky to live within a diverse culture with beautiful and vast plains. These spread out across our great country. Unlike other nations, we rely a lot on airlines to provide us with transportation to get around. These trips offer us valuable connections with family, friends, and the opportunity to see and experience unique landmarks, while also providing links to keep our economy moving forward.

Since government-imposed restrictions have encouraged people not to fly, we have seen a dramatic fall in demand for air transport. Many will stay home to flatten the curve of COVID-19. We understand that this is important not only for our nations health but the economy in the future. We also know that these are challenging times for people.

One of the things we take for granted in this great nation is the viability and competitive nature of our airlines. We are lucky to have two full-service carriers that provide competition and value to Australian travellers and contribute to tourism. One of those is Virgin Australia.

Virgin Australia began as Virgin Blue. It took ten years for this airline to compete with its competitor in the full-service category. During this time of development, we saw many innovations introduced to the benefit of the consumer and economy. We have not seen this before, even with the former Australian carrier that folded in March 2002.

Virgin Australia has helped:

  • Over 25 million people travel a year.
  • Contribute over $11 billion dollars a year in tourism, which supports over 600,000 people in jobs.
  • Operate to 39 destinations under its domestic and regional airline brand.
  • Provide access to over 450 worldwide destinations through its virtual network
  • Offer travel choice and value for the Pacific Islands, New Zealand, North America and Asia routes.
  • Employ over 10,000 Australians.
  • Hold a ~37% share in the domestic market and put pressure on the competition to introduce two low-cost carriers.
  • Deliver efficiency as recognised with most-on time departure airline for 2018-2019.  
  • By getting people to their destination, with least likely airline to cancel your flight in 2019.
  • Community partners including the Starlight Children's Foundation, Greening Australia, Salvation Army, Oz Harvest and many more.
  • Support thousands of more jobs and sectors indirectly.
     

This company has also helped to provide innovation and value in this nation, including:

  • A 37% reduction in airfares since operating.
  • The first successful trial of sustainable fuels at Airports in Australia.
  • The world's first government-certified carbon offset program.
  • The first Australian airline to provide Wi-Fi for guests via LA.
  • The first Australian airline to allow comfort devices on board.
  • The first Australian airline to offer online web check-in for guests.
  • A leading business product for government and corporate Australia in domestic travel.
  • A unique and diverse brand culture that focuses on value for leisure and corporate travelers.
  • Voted as one of the world's top 20 safest carriers around the globe to travel with (AirlineRatings.com) among other awards for Best Cabin Crew for three years in a row and Best Business Class for 2017 and 2018. 

We know from history that without a competitive aviation industry, many people in our country will not be able to enjoy these valuable connections, particularly in regional communities such as Albury, Mackay, Townsville, Port Macquarie, Mildura, Alice Springs and Darwin.

We also know that from history a monopoly benefits no one. It gives too much power to one carrier. This monopoly leads to less innovation and higher airfares for many Australians.

Moreover, the idea that another airline will be able to compete and offer the same level of service at this challenging economic time presents an argument that many aviation experts agree is flawed. We know that the Civil Aviation Safety Authority (CASA) takes 12 months, sometimes years to approve new airline operators to serve a country. We know too that would require a substantial capital investment, which at this time is unlikely to be provided from the private sector—also, the incredible cost and logistics of employee and asset displacement and reallocation.

For this reason, we sign this petition to urge you to:

  • Support Virgin Australia by offering the industry assistance it needs, such as a loan which it will pay back in 2-3 years to keep running as Australia's second-largest airline.
  • Or to provide Virgin Australia with a guarantor statement that will allow it to seek financial assistance elsewhere, but give the confidence it needs to achieve financial support.

If the airline is unable to pay for the loan (unlikely given post-COVID-19 travel forecasts), then the government would acquire an equity stake that it could sell, similar to when it owned the national carrier for 70 of its 100 years in operation.

Other foreign airlines are unlikely to support an Australian airline when they have to protect their own in this uncertainty. CAPA - Centre for Aviation forecasts that without government support, many airlines around the world will go bankrupt. Australia has the chance to invest in a bright future inspired by innovation, collaboration and imagination. The Virgin Group that owns ~10% and has over 60 brands are also less likely to be able to provide more assistance, given many of these businesses have borne the brunt of this storm and have lost more than $400 million in the first few weeks alone.

We sign this on behalf of the thousands of people who work for this airline and share a unique family bond that is Virgin Australia. We also do this to support a competitive and robust aviation industry. So that people have the choice and chance to travel, and support tourism for many years to come.

Thank you.

85,231

The issue

Dear Prime Minister Scott Morrison, 

In Australia, we are lucky to live within a diverse culture with beautiful and vast plains. These spread out across our great country. Unlike other nations, we rely a lot on airlines to provide us with transportation to get around. These trips offer us valuable connections with family, friends, and the opportunity to see and experience unique landmarks, while also providing links to keep our economy moving forward.

Since government-imposed restrictions have encouraged people not to fly, we have seen a dramatic fall in demand for air transport. Many will stay home to flatten the curve of COVID-19. We understand that this is important not only for our nations health but the economy in the future. We also know that these are challenging times for people.

One of the things we take for granted in this great nation is the viability and competitive nature of our airlines. We are lucky to have two full-service carriers that provide competition and value to Australian travellers and contribute to tourism. One of those is Virgin Australia.

Virgin Australia began as Virgin Blue. It took ten years for this airline to compete with its competitor in the full-service category. During this time of development, we saw many innovations introduced to the benefit of the consumer and economy. We have not seen this before, even with the former Australian carrier that folded in March 2002.

Virgin Australia has helped:

  • Over 25 million people travel a year.
  • Contribute over $11 billion dollars a year in tourism, which supports over 600,000 people in jobs.
  • Operate to 39 destinations under its domestic and regional airline brand.
  • Provide access to over 450 worldwide destinations through its virtual network
  • Offer travel choice and value for the Pacific Islands, New Zealand, North America and Asia routes.
  • Employ over 10,000 Australians.
  • Hold a ~37% share in the domestic market and put pressure on the competition to introduce two low-cost carriers.
  • Deliver efficiency as recognised with most-on time departure airline for 2018-2019.  
  • By getting people to their destination, with least likely airline to cancel your flight in 2019.
  • Community partners including the Starlight Children's Foundation, Greening Australia, Salvation Army, Oz Harvest and many more.
  • Support thousands of more jobs and sectors indirectly.
     

This company has also helped to provide innovation and value in this nation, including:

  • A 37% reduction in airfares since operating.
  • The first successful trial of sustainable fuels at Airports in Australia.
  • The world's first government-certified carbon offset program.
  • The first Australian airline to provide Wi-Fi for guests via LA.
  • The first Australian airline to allow comfort devices on board.
  • The first Australian airline to offer online web check-in for guests.
  • A leading business product for government and corporate Australia in domestic travel.
  • A unique and diverse brand culture that focuses on value for leisure and corporate travelers.
  • Voted as one of the world's top 20 safest carriers around the globe to travel with (AirlineRatings.com) among other awards for Best Cabin Crew for three years in a row and Best Business Class for 2017 and 2018. 

We know from history that without a competitive aviation industry, many people in our country will not be able to enjoy these valuable connections, particularly in regional communities such as Albury, Mackay, Townsville, Port Macquarie, Mildura, Alice Springs and Darwin.

We also know that from history a monopoly benefits no one. It gives too much power to one carrier. This monopoly leads to less innovation and higher airfares for many Australians.

Moreover, the idea that another airline will be able to compete and offer the same level of service at this challenging economic time presents an argument that many aviation experts agree is flawed. We know that the Civil Aviation Safety Authority (CASA) takes 12 months, sometimes years to approve new airline operators to serve a country. We know too that would require a substantial capital investment, which at this time is unlikely to be provided from the private sector—also, the incredible cost and logistics of employee and asset displacement and reallocation.

For this reason, we sign this petition to urge you to:

  • Support Virgin Australia by offering the industry assistance it needs, such as a loan which it will pay back in 2-3 years to keep running as Australia's second-largest airline.
  • Or to provide Virgin Australia with a guarantor statement that will allow it to seek financial assistance elsewhere, but give the confidence it needs to achieve financial support.

If the airline is unable to pay for the loan (unlikely given post-COVID-19 travel forecasts), then the government would acquire an equity stake that it could sell, similar to when it owned the national carrier for 70 of its 100 years in operation.

Other foreign airlines are unlikely to support an Australian airline when they have to protect their own in this uncertainty. CAPA - Centre for Aviation forecasts that without government support, many airlines around the world will go bankrupt. Australia has the chance to invest in a bright future inspired by innovation, collaboration and imagination. The Virgin Group that owns ~10% and has over 60 brands are also less likely to be able to provide more assistance, given many of these businesses have borne the brunt of this storm and have lost more than $400 million in the first few weeks alone.

We sign this on behalf of the thousands of people who work for this airline and share a unique family bond that is Virgin Australia. We also do this to support a competitive and robust aviation industry. So that people have the choice and chance to travel, and support tourism for many years to come.

Thank you.

The Decision Makers

Catherine King
Shadow Minister for Infrastructure, Transport and Regional Development
Responded
Thank you for launching this petition and to the thousands of signatories. Federal Labor is behind your campaign to keep Virgin, and our entire aviation industry, in the skies. The Morrison Government must extend a lifeline to Virgin to support the airline and its staff through this crisis. If it does not, it is taking an active decision to see one of our major airlines fail. This will have significant consequences for thousands of workers across the aviation sector and the recovery of our entire economy. The Government has a responsibility to all Australians to ensure the current structure of the aviation industry is retained beyond the crisis as it supports jobs, promotes competition and ensures services regularly reach all Australians. This includes two full service airlines with budget partners and a strong network of regional carriers. The Government has shown a willingness to support smaller airlines, including Rex which is also majority foreign-owned, through a $100 million package to address the cash flow crisis of a dozen regional airlines. It must now be flexible and be open to options for financially supporting large aviation companies, like Virgin Australia. Such support could include extending or guaranteeing lines of credit and taking an equity stake, which will ensure that when the industry bounces back – and it will – Government can recoup its investment. Despite claiming it is continuing to work with the major airlines, the Government’s commentary in the past fortnight has been unhelpful and only serves to undermine bipartisan efforts to protect the aviation sector. Comments ruling out support for Virgin and claiming a major airline can fail and be replaced by a foreign company, and that the Government is prepared to let that happen, do not serve Australians well. They fail to account for the massive displacement of workers or that any new entrant faces a long lag time before it could secure necessary approvals, procure aircraft, recruit staff then begin operations. Our entire aviation sector will be critical in supporting the broader economy, in the recovery from the Covid-19 crisis. If a major airline like Virgin is not there in the recovery, it will hurt our tourism sector, services industries and broader economy - as well as the thousands of workers directly employed by the company. It is not possible for the aviation industry to ‘hibernate’ over coming months without adequate government support. The aviation downturn came about from Government imposed travel restrictions and social distancing measures necessary for public health. Many aviation companies had no capacity to go into the crisis with large cash reserves, and no-one can predict when the crisis will end, let alone when normal operations will resume. The services provided by Virgin benefit many Australians who live and work in Australia’s capital cities and regional centres. Virgin provides essential transport services for our tourism visitors and for Australians traveling for work and pleasure. Time-critical freight is moved in the bellies of Virgin aircraft, and regional Australians use Virgin air services to access essential services. Importantly, some 10,000 Australians work for Virgin Australia. While Labor welcomed the Government’s aviation packages, we highlighted they do not go far enough and do not protect jobs. With tighter travel restrictions now in place, a package based on refunding around half a billion dollars in fees and charges incurred when flying is now of limited benefit to airlines. The wage subsidies announced after calls from ACTU, the business community and Labor should provide many aviation workers with ongoing financial support and allow them to seamlessly go back to their jobs when the sector begins to recover. Labor continues to raise a number of issues with the Government regarding eligibility and operation of the wage subsidies. Federal Labor will always back our aviation industry, and the hundreds of thousands of workers within it. We are continuing to push the Government to ensure that aviation workers and the companies they work for are supported through this crisis and are able to get back to work as soon as possible.
Michael McCormack
Deputy Prime Minister of Australia
Scott Morrison
Federal Member for Cook

Petition Updates

Share this petition

Petition created on 4 April 2020