Coalition would let foreign carriers fly domestically from Darwin

This would allow flights passing through Darwin from overseas to pick up freight and passengers and carry them onwards to destinations such as Sydney and Melbourne.

“The Coalition wants to get the cost of NT flights down to boost tourism and increase options to travel to see family or do business with other states,” McKenzie said.

“Air travel is not a luxury for the Northern Territory – it’s a necessity. This policy is a practical, strategic step to fix what Labor has failed to address: connectivity, competition, and opportunity for the Top End.”

Transport Minister Catherine King rubbished the proposal as “another non-announcement from the Coalition who are once again playing policy catch up”.

“The Albanese Labor Government’s Aviation White Paper already commits us to opening up domestic routes to international carriers on a case-by-case basis,” she said.

 “We will consider requests by airlines when demand is there. This is a responsible approach which keeps capacity open to regional and domestic carriers, while providing more choice for Australian travellers.

“This term we have also landed over a dozen new Airservices agreements with countries including Türkiye, Hong Kong, Chile and Vietnam, increasing choice and lowering international ticket prices for Australian travellers.”

In a statement, Darwin Airport operator Airport Development Group (ADG) said it would need to “review the detail of the proposal to understand the mechanics and potential impacts on the regional aviation sector”.

“ADG understands the unique challenges of operating in remote and regional parts of Northern Australia and is supportive of any measures that lead to increased connectivity and more affordable airfares for communities and visitors alike,” the company said.

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“The Australian Airports Association (AAA), of which ADG is a member, has long advocated for greater competition and better connectivity in the domestic aviation market. More carriers can bring airfares down and create more choice for the travelling public, as we’ve seen in the growing international market.

“Aviation in regional Australia is complex, and it’s important to maintain a model that is sustainable. ADG will carefully consider this policy and its potential impact on the communities we serve.”

Additionally, the proposal has been met with scepticism by the airline industry. Both Qantas Group and Virgin Australia opposed cabotage in their respective submissions to last year’s Aviation White Paper.

Airlines for Australia and New Zealand (A4ANZ), the peak body for local airlines, said in a statement that it is opposed to any change in current cabotage restrictions.

“Most countries do not permit aviation cabotage, and the removal of cabotage restrictions would put Australia at odds with the rest of the developed world,” the statement read.

“International research shows that there is little evidence to suggest that removal of cabotage restrictions leads to growth in tourism, and a 2015 inquiry by the Productivity Commission found that it was ‘unlikely that consecutive cabotage (domestic carriage on a domestic leg of a foreign airline’s international flight) would lead to substantial efficiency gains’.

“Any move to develop a decision-making framework for cabotage dispensation will need to be contingent upon first completing an impact assessment, in close consultation with industry, of the effects of lifting the restrictions to allow foreign carriers to operate domestic routes in Australia – including the impact on Australian jobs.”

International airlines are also lukewarm on the proposal, with executive director of the Board of Airline Representatives of Australia (BARA), Stephen Pearse, having told The Australian the body’s members – including Qatar Airways and Singapore Airlines – see both logistical and financial challenges in cabotage.

“BARA does not perceive cabotage as an effective solution for increasing domestic aviation competition,” Pearse said.

“More open aviation bilateral agreements would provide direct benefits to the economy and for consumers, regardless of whether those services are provided by international or Australian-based carriers.”

Qantas and Virgin last year were accused of price gouging at Darwin Airport, which has seen high domestic airfares in recent years.

Interstate return airfares to and from Darwin can cost up to $1,500, ABC’s Stateline reported in November, with customers reporting high prices even when booking half a year in advance. Both major airlines denied they are gouging passengers.