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Virgin blue over levies

 

By Andrew Dawson
Copyright 2002 Nationwide News Pty Limited
Article date: November 19, 2002
 

Virgin Blue chief executive Brett Godfrey yesterday implored state and federal governments to resist increasing airline ticket levies.

Mr Godfrey said levies were "holding back the tourism industry" and called for the immediate axing of the $5-a-flight Ansett levy.

"What we are trying to say is 'bugger the taxes off'," Mr Godfrey told a Securities Institute luncheon in Brisbane yesterday. "Let's go lean and that will be the stimulus to develop the (tourism) industry, nothing else.

"It is one of our most important industries, particularly in this state, and yet we continually think we will tax the people that travel as a means of supporting and enhancing tourism."

Mr Godfrey confirmed Virgin Blue's growth, announcing that its fleet would expand from 26 to 28 by Christmas and claiming the airline would have the youngest Boeing fleet in the world by March next year.

He also confirmed that Virgin Blue would start services to an unnamed overseas destination by the middle of next year, and that embattled Bali "is one route we will seriously consider as one of the early (overseas) routes".

"We have to heed the advice of government travel warnings. But, with all due respect, it is like falling off a bike. You have to get back on it," Mr Godfrey said.

"And if we allow terror to rule the skies, then they (terrorists) just move on to the next destination."

Mr Godfrey said 18 Pacific destinations had received tenders, including Bali, Fiji, Tonga, Samoa and East Timor.

"It is a great opportunity for the airports and the tourism authorities to back what we are going to do.

"We have shown every market we have gone into has been stimulated.

"Last year there was $110 million added to the domestic economy (courtesy of Virgin Blue) in terms of additional room nights, car hire . . . There was an additional $18 million worth of meals consumed in this country as a result of our low fares.

"That is a great stimulus for any economy and if we do the same type of thing for these regional Pacific countries, hopefully they will be holding their hands up to every question we ask."
 

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