Virgin boss calls for a fair go

As Qantas seeks government help in the wake of a massive loss, Virgin says the carbon tax should go and the market should be freed up.

Virgin Australia boss John Borghetti addresses and audience

Virgin Australia boss John Borghetti has called for the government to scrap the carbon tax. (AAP)

Virgin Australia boss John Borghetti says the best thing the government and Labor could do for airlines is to scrap the carbon tax and end the "age of entitlements" for business.

Virgin on Friday reported a first-half loss of $83.7 million as it fights to take market share from rival Qantas.

Mr Borghetti said he had no problem with the government repealing the Qantas Sale Act, to allow the rival airline to take on majority foreign ownership.

"(But) the best assistance the government and the opposition can provide is the removal of the carbon tax, which has cost this industry hundreds of millions of dollars," he said.

"To that end, I just say we applaud the government's position on this."

Labor and the Greens are blocking the carbon tax repeal legislation in the Senate, but the government is hopeful the new Senate - which starts on July 1 - will help it pass the bills.

Mr Borghetti says he opposes the government providing a debt guarantee to Qantas.

"We have earned our right to exist," he said.

"If Australia is to prosper in the age of globalisation, then the age of entitlements needs to go.

"Nobody is entitled to a certain percentage of the market - you need to work hard to get that."

Mr Borghetti says Virgin has contributed $11 billion to the Australian economy, bolstered the tourism industry through co-operation with state and federal tourism bodies, brought prices down while improving service delivery, and created jobs.

"Why would any government or opposition consider setting us back?" he said.


2 min read

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Source: AAP


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