Virgin Australia threatens to relocate Brisbane headquarters due to Newman Government

[eastwest101]

Article from Brisbane Courier Mail:

Virgin Australia threatens to relocate Brisbane headquarters due to Newman Government treatment | The Courier-Mail

Don't know what the problem is but I guess the state subsidized routes and competition between QF Link and DJ is starting to enter the realms of state politics. Possibly less or total deregulation of some markets?

 

[anat0l]

Re: Virgin Australia threatens to relocate Brisbane headquarters due to Newman Govern

Apart from a certain well-known member of our forum here, I'm not entirely sure what relocating will do except spite.

If Virgin wants to compete in QLD by pushing for deregulation of more regional routes or a share in the rights contracts, that would happen relatively independent of the location of Virgin's headquarters, and relies heavily on the government. Yes, this does mean a good handful of QLD jobs going to another state, as well as probably the revenue boasting, but I'm sure the government is too engrossed in building its other pillars of a strong economy (including tourism (ho hum ) and mining) as well as cutting jobs ("it's all Labour's fault") to be overly concerned about this posturing.

Also, let's not forget too much that it was a Labour initiative to encourage Virgin (then Blue, now Australia) to set up shop in QLD; no reason why the Coalition government should be overly guilty about being neglectful, since it's "not their baby", so to speak.

Interesting that the government would seem to categorically not consider its other options, especially since it would probably get some savings from the process (through instilling the fear of God into both mainline carriers). Corruption much, or just laziness?

 

[eastwest101]

Re: Virgin Australia threatens to relocate Brisbane headquarters due to Newman Govern

Interesting that the government would seem to categorically not consider its other options, especially since it would probably get some savings from the process (through instilling the fear of God into both mainline carriers). Corruption much, or just laziness?

I think we need to clarify that the minister was quoted as keen to talk to VA about what their gripes are, I think its the bureaucracy thats dragging the chain about removal of subsidies to QF link and allowing competition on some routes. It did just seem to pop up from nowhere though. The unofficial nature of the announcement of QF Link maintaining those subsidized routes through to 2014 is also interesting and could say something about the relationship between the QLD public service and the ministers....

Do VA still get the payroll tax deductions that they originally got, or did they have sunset clauses in them? The comments about the lack of traffic from QLD Government was interesting - although I guess the public service may have already locked in some long-term contracts with Qantas that would be tricky to get out of.

 

[markis10]

Re: Virgin Australia threatens to relocate Brisbane headquarters due to Newman Govern

It sounds like the Department has just extended the contract by putting in place the contractual options, not sure I would like to be the person responsible now the cat is out of the bag given the government is trying to trim costs which they could have done here!

 

[anat0l]

Re: Virgin Australia threatens to relocate.... not!!!

Well according to an article on ABC Online, Virgin aren't thinking of moving HQ at all. (Sorry, hard to cross post on a mobile device)

So much for the sensational headline.... as usual......

 

[eastwest101]

Re: Virgin Australia threatens to relocate.... not!!!

Maybe either one of the VA PR people got misquoted or a little carried away or maybe the Courier Mail journalists taking a bit of "artistic licence"...

 

[anat0l]

Re: Virgin Australia threatens to relocate Brisbane headquarters

...maybe the Courier Mail journalists taking a bit of "artistic licence"...

Right... a licence to shill......

 

[markis10]

Re: Virgin Australia threatens to relocate Brisbane headquarters

Can someone get me Sir Humphrey? We need to give JB a call.

Yes minister.