Virgin Australia boss John Borghetti has rubbished a federal government plan to allow foreign airlines to fly domestic routes in the country's north, saying it simply wont work.
The Abbott government is reportedly considering a so-called "open skies" plan to open routes in northern Australia to foreign carriers in order to increase competition, bring down prices and stimulate local economies.
But Mr Borghetti said the proposal would put Australia at odds with the rest of the world and could force Virgin and Qantas to ditch routes to smaller cities and towns.
"No other country does this and there's a reason for that because it decimates local industry and, long term, is unsustainable," he told the Annual Stockbrokers Conference in Sydney.
"If it does happen it will put great pressure on us and we'll have to review where we are flying."
He said it was doubtful overseas carriers would use aircraft designed for international routes, like 747s, to "secondary destinations" like Broome or Townsville.
And he said foreign carriers would be much quicker to pull out of routes once they became uneconomical.
"Do you really think they will be flying there and even if they did, how long do you think they will keep doing it? While it suits them."
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