Webjet slams Labor for airline collapse

Webjet slams Labor for airline collapse
By admin


Webjet is seeking compensation from the Federal Government after insisting more should have been done to prevent the collapse of Air Australia and the subsequent financial misery that confronted travel agents and consumers.

The online retailer has twice written to Prime Minister Julia Gillard – without reply – outlining its grievances and accusing the government of “gross negligence” in failing to conduct financial checks on the carrier.

Webjet has now taken up the matter with opposition leader Tony Abbott.

Non executive chairman David Clarke told Travel Today the government has a duty to ensure airlines are solvent.

When it finally stopped flying, Air Australia had racked up losses of $65 million with debts of between $80m and $90m.

“The government was warned by a number of parties that Air Australia had issues but it buried its head in the sand,” he said. “And now the Prime Minister can’t be bothered to reply to letters from a publicly listed company. It’s a fiasco.”

The government requires airlines to be licenced and chooses to “exert administrative control" through CASA (Civil Aviation Safety Authority), but then does nothing to ensure the carrier’s financial viability, Clarke said.

“We think it is grossly negligent to allow a bankrupt airline to continue operating,” he continued. “We suffered credit card charge backs from the collapse and we have indicated to the Government that we consider they have a responsibility to pay up.”

Clarke said the amount of money was “not material” but said Webjet was acting on a matter of principle.

Agents learned last week that they will receive only 21.88 cents in the dollar for refunds lodged with the International Air Transport Association (IATA) following Air Australia’s demise.

It ignited fresh calls for more effective government scrutiny of a airline’s financials, a cause championed by Australian Federation of Travel Agents (AFTA) chief executive Jayson Westbury.

Clarke said he fully supported Westbury’s stance while Air Tickets general manager Russell Carstensen urged the AFTA leader to keep lobbying.

“The refund amount was disappointing. I hope Jayson keeps going with the call for greater scrutiny,” he said.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Sustainability
  • Wholesalers

The Intrepid Foundation launches appeal to support Northern Vietnamese communities following Typhoon Yagi

Intrepid Travel has launched an emergency appeal through its not-for-profit, The Intrepid Foundation, to support impacted communities in Northern Vietnam following Typhoon Yagi, which made landfall on 7 September, 2024. All funds raised through the appeal will go directly to grassroots organisation Blue Dragon Children’s Foundation, to provide immediate relief to thousands without shelter, food […]

  • Aviation

Philippine Airlines and VietJet look to community connection near Western Sydney Airport

Both Philippine Airlines and VietJet will explore services from Western Sydney Airport with the airport’s proximity to the Filipino and Vietnamese diaspora in Sydney potentially beneficial to both carriers. Philippine Airlines VP revenue management and commercial planning Alex Featherstone, speaking at the CAPA Airline Leader Summit Australia Pacific, said the carrier would “explore” the potential […]

  • Tourism

Australian Cycle Tours adds new cycle trip to the Murray to the Mountains Rail Trail

Australian Cycle Tours has added a new, extended cycle trip that includes all sections of the popular Murray to the Mountains Rail Trail. The new trip commences in Beechworth with the first two days cycling with a transfer back to Beechworth, before continuing to Myrtleford and Bright, with a cycle on the newest sections of […]

  • Events
  • News

Anangu Communities Foundation raises $75,000 at its third annual Sydney fundraiser

Generous supporters gathered at the Sofitel Sydney Darling Harbour for the third annual Anangu Communities Foundation Sydney fundraiser to help raise $75,000. Voyages Indigenous Tourism Australia administers the Foundation which so far has funded over $3 million in projects to support Anangu communities of Central Australia with a focus on building community capacity in healthcare, […]

  • News
  • Travel Agents

‘Virtuoso on Tour’ photos: Virtuoso showcases its best to agent base

Virtuoso hosted its second annual Virtuoso On Tour,  a destinations event at the ICC in Sydney showcasing tour operators, tourism boards and more to its agent family. The event is designed for travel agency members in Australia and New Zealand to network with Virtuoso partners across the globe. It housed six destination-themed pavilions (Australia & […]