Qantas says it is dedicated to serving country Australia despite shutting bases and skyrocketing costs, amid fears the aviation industry is in crisis.
QantasLink has announced its bases in Canberra, Hobart and Mildura will shut from April 2026, in the wake of Rex falling into voluntary administration and budget airline Bonza collapsing.
Executives from the Flying Kangaroo’s regional arm fronted a Senate inquiry to explain the decision in a sometimes heated hearing at Parliament House on Friday.
The cost of regional operations on a per-seat basis was 130 per cent higher than other domestic services and 230 per cent more than international routes, chief executive Rachel Yangoyan said.
That was due to higher regional airport fees, security, fuel and maintenance spread across smaller passenger numbers.
“While at times we need to make tough decisions to ensure the sustainability of our operations, we are as committed as ever to investing in the future of regional Australia,” Ms Yangoyan said.
The majority of 71 cabin and flight crew from the bases were being financially supported to commute or relocate, while three cabin members decided to quit, the hearing was told.
Greens senator Peter Whish-Wilson told the airline’s executives its staff was feeling abandoned after tumultuous conditions during the COVID-19 pandemic.
He read out a note from a former Qantas pilot about the significant mental health repercussions of suddenly being relocated from Perth during that time.
Ms Yangoyan said she understood the impact that workplace changes had on workers, including the base closures.
“That is why we have spent a lot of time … working on ways to make this work so that they can continue to live in their communities, if that’s what they wish,” she said.
Transport Workers Union organiser Sam Lynch accused Qantas of turning a profit at the expense of passengers and staff, pointing to a $90 million Federal Court fine in August for illegally outsourcing more than 1800 ground staff during the pandemic.
“I don’t think it’s an exaggeration to say that the aviation industry across our country … is in crisis,” he said.
“We’re seeing that it’s regional Australia that is copping the brunt.”
Flight Attendants’ Association of Australia federal secretary Teri O’Toole said the union helped staff at the three bases secure financial packages to relocate, commute or leave.
“Money cannot replace a parent at a dinner table, it cannot replace lost time with an elderly parent,” Ms O’Toole said.
“This closure strips regional Australia of skilled jobs and forces loyal staff to make an impossible choice between livelihood and their loved ones.
“We ask the committee to recognise that even with this support for regional workers, a business efficiency measure often remains a personal catastrophe.”
The inquiry will continue to investigate the aviation industry’s ability to service regional and rural communities, and is due to report by mid-2026.