The Queensland Government has announced it will be placing a bid for the Virgin Australia airline, dubbing it ‘Project Maroon’.
Treasurer Cameron Dick says the airline is crucial for the tourism of the state and remembers the effects that the collapse of Ansett had back in 2002.
“My number one focus as Treasurer is to retain and create jobs for Queenslanders, particularly as we move beyond the COVID-19 crisis,” said Mr Dick.
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“We saw the punishing increase to the cost of flights after the Ansett collapse, and this Government will not stand by and let that happen again,” said Mr Dick.
The state government has employed the help of the Queensland Investment Corporation to getting the bidding strategy underway with CEO Damien Frawley leading the way.
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Government involvement could take the form of a direct equity stake, a loan, a guarantee or other financial incentive.
At today’s press conference Prime Minister Scott Morrison said that the Federal Government will not interfere with the process.
“What we have done … and that is ensuring that Virgin will keep flying and will fly into the future. And we resisted, what I think to be very preemptive and I think rather dangerous calls for the commonwealth to engage in this area, on behalf of taxpayers at that very phase. And I think as a result of that good judgement, to allow this process to do its job, which is what is occurring. There are many bids that are coming through the process and we welcome that,” said Mr Morrison.
