ASIAN airlines have dealt Queensland tourism a major blow, saying they are struggling to survive and could not contemplate new services to Cairns or Queensland.
ASIAN airlines have dealt Queensland tourism a major blow, saying they are struggling to survive and could not contemplate new services to Cairns or Queensland.
Tourism Minister Desley Boyle delivered the bad news from Seoul yesterday afternoon after a day of meetings with executives of Japan Airlines, Korean Airlines and Cathay Pacific where she was armed with $4 million in incentives to draw new carriers to pick up the slack left by the Qantas decision to reduce flights to Queensland from Japan.
"One airline executive told me, 'It's not a case of how to make money, but how to survive'," Ms Boyle said.
Only last Friday, Ms Boyle said the rising fuel costs did not appear to be affecting Asian airline operators as much as in other parts of the world, but she said yesterday’s meetings had given her a different view.
"Asian airlines are very severely affected," Ms Boyle said.
"In some cases, wholesalers have packages to Australia for $400 but fuel surcharges are $500."
"Japan Airlines, for example, says it is desperately trying to hold on to its Brisbane service.
"None of the airlines we spoke to is eager to take on new routes, which is bad news."
But yesterday's meetings did reaffirm the strong demand by Japanese tourists for Cairns.
"Again everyone we spoke to is absolutely flabbergasted with the Qantas decision and they have told us there are hundreds of thousands of Japanese tourists and students who want to come to Cairns," Ms Boyle said.
While Ms Boyle, Tourism Queensland and Tourism Australia officials are still to meet Cathay Pacific officials, it is likely the focus of the group will switch to maximising capacity through existing links.
"We have learned that the western Japan markets or Osaka and Nagoya are very strong in their demand for Australia but they do not want to fly through Tokyo because of difficulties matching domestic and international travel," Ms Boyle said.
"What we now have to work on is ensuring we maximise the capacity on Continental Airlines flights through Guam, Korean Airline flights through Seoul and Cathay Pacific through Hong Kong for those western Japan markets."
