AUSTRALIA- Updates says, Australia’s government will subsidize 800,000 half-price airfares of around A$1.2 billion that is around $920 million to support and grow the ailing tourism industry of the country, which got affected due to the Covid-19 pandemic. That’s how the sticks in the country’s aviation and travel industries jumped.
It has been decided that the discounted fares would run from April 1 to July 31. It is designed to offer aid to the tourism-dependent regions and should support airlines, hospitality places, hotels, and so on, said President Scott Morrison. Moreover, the air packages will also include further provision for the international aviation industry too. Thus, it will expand a government-based loan program to small and medium-sized business units.
Morrison added- this step of the subsidized tickets program will raise more jobs and investment for the tourism and aviation sector or units as Australia heads toward winning the fight against Covid-19, and will stand out firm especially the units that got hurt severely.
It’s a fact that not only Australia but the whole nation got affected by the Covid-19 outbreak which led to a huge loss to human lives and professional industry. Even, after controlling and restricting the waves of infections, it isn’t fully at a better place to operate.
Also, sources say, the economy powered into 2021, with gross domestic product (GDP) plunging 3.1% in the last three months of 2020, before the quarter. Yet, the relief package for the airlines shattered by covid-19 related restrictions.
The Australian airline, Qantas Airways Ltd. is cutting at least 8,500 jibs, lost around A$11 billion in revenue to the global pandemic in 2020 alone, it is more than half its normal annual sales. Currently, its shares were raised to 2.9% a.m. in Sydney trading, while travel unit Webjet Ltd. augmented 3.1%.
The subsidized airfare will be available on around 57 routes in Australia.
Meanwhile, Joyce said- “This package for us ticks all the boxes”.
Another rival airline Virgin Australia is beneath new ownership after failing in the last year. Even the predictions say- Global air-travel industry isn’t fully expected to recover until 2024.
Later on Thursday, Morrison said that it was too early to fortify overseas travel would resume by coming October. Tourism operator Flight Centre Travel Group Ltd. said the package was very meager and was unlikely to support international arrivals are allowed. It is been a well-thought step, let’s see what would be the outcome!
Note: This news is based on millions of articles over the internet, Global Business Line does not take any responsibility for the facts and information mentioned in this news article.