Australia's main airlines Qantas Airways and Virgin Australia will operate a minimum domestic service between state and territory capitals and regional areas after the federal government pledged A$165mn ($105mn) to partially fund the flights.
Qantas and Virgin had cut up to 90pc of their domestic flights in response to travel restrictions arising from the Covid-19 pandemic, which has lead to a collapse in domestic and global jet fuel demand. Australia's jet fuel sales slumped in February to their lowest level since June 2016.
The government funding will start for flights from today and last for eight weeks, with the financing to be reviewed on or before 7 June. This will depend on how the coronavirus has been contained, said Australian transport minister Michael McCormack.
Canberra's funding follows the A$198mn pledged to regional airlines on 28 March and the A$715mn in funding for the sector announced on 18 March, which was mainly provided to Qantas and Virgin Australia.
Qantas and its budget airline subsidiary Jetstar will increase the number of passenger flights they operate to 164 per week from 105 prior to the government funding. Virgin Australia plans to operate 64-return domestic flight services a week after previously only operating domestic flights for essential services.
