TRANSCRIPT: SKY NEWS FIRST EDITION INTERVIEW, 17 April 2020
E&OE
Subjects: Coronavirus, Government Support for Australia’s Domestic Aviation Network;
PETER STEFANOVIC
Well, joining me now is the Transport Minister and the Deputy PM, Michael McCormack. Welcome to the show. Thanks for joining us. So, first of all –
MICHAEL MCCORMACK
Thanks Peter.
PETER STEFANOVIC
On this deal that’s been arranged, it’s an – it’s an eight-week quick fix. What happens beyond that?
MICHAEL MCCORMACK
Well, we'll review it as we have done all the way through and whether it's been education, agriculture, no matter what the case has been – we've kept reviewing it and we've kept making sure that, of course, there has to be a demand. I'm sure Peter, that there will still be a demand for the sorts of things that, there's not only carting people, it's also going to be ferrying vital medical equipment, personal protection equipment, indeed, medicine and masks. Those sorts of things are going to also be on these flights. Capital city to capital city and indeed taking those regional centres into account. So, it’s a $165 million lifeline, 220 flights a week, on 60 different routes. This is going to make such a difference for the airlines and most importantly for consumers.
PETER STEFANOVIC
How much more funding, though, could you possibly give? I mean, surely running out of wriggle room.
MICHAEL MCCORMACK
Well, we've done the right thing. This is not only a health pandemic it's also of course, a big hit economically. But we thank those Australians who have done the right thing. We've put in place the JobKeeper, that's helped the airlines, that's helped businesses right across the nation and most importantly, it's helped workers. So, we've done the right and responsible thing as a nation. Sadly, there’s been 63 deaths and for those families, of course, they've lost their loved ones. It's a long time since March 1 when James Kwan died. It seems an eternity ago. But for each and every one of those people who've lost, well we mourn for them. We offer our condolences. But when you compare what Australia has done, compare it to those overseas nations and the numbers of deaths, you look at the UK, 12 thousand deaths, it’s got a population just a little bit over twice Australia’s. So, we've done reasonably well, Peter.
PETER STEFANOVIC
This deal that you've just signed off on, it is great for those regional centres, as you just say. It is a temporary – a quick fix for Virgin, though. They want $1.4 billion, so this falls well short. Are they likely to get that?
MICHAEL MCCORMACK
Well, as the Prime Minister said, there's a market solution for the Virgin situation. I keep talking with Paul Scurrah, not just on a daily, but almost on an hourly basis. And, yes, we're concerned. We want two viable airlines to come out of the COVID-19 situation. I'm confident that we can. I'm confident that the more than $1 billion that we've already put on the table and Virgin have been very much front and centre of that, we can have two commercial, viable, airlines out of this. I'm sure that this eight-week period will help commercial airlines such as, of course, Virgin and Qantas to put passengers where they need to be for those who come in from overseas, perhaps on one of our mercy flights that we've also subsidised. They can now be in quarantine for the fortnight and get home safe and sound and that's the important thing – saving livelihoods and saving lives.
PETER STEFANOVIC
Okay so you just – You refer to the question of a market solution. So is that to say that the Government's not going to give them that money?
MICHAEL MCCORMACK
Well, we'll keep monitoring the situation but there is a market solution for Virgin –
PETER STEFANOVIC
[Interrupts]
MICHAEL MCCORMACK
We appreciate that, we’ll keep monitoring it every day.
PETER STEFANOVIC
Okay, but a market solution. We will be talking industry super funds here?
MICHAEL MCCORMACK
Well, I think the Prime Minister made it quite clear last night that if those industry super funds wanted to back their own workers, their own airline, then, you know, that's a viable option too.
PETER STEFANOVIC
I mean, they're worth some $3 trillion, so are you hearing this?
MICHAEL MCCORMACK
Oh, indeed, there’s a lot of money there and it’s a shame that more Australian businesses aren’t backed by super funds, it’s, you know, people should back themselves. People should get in and behind their own workers, their own people and I think the Prime Minister has put it on the line, it’s a good idea as well.
PETER STEFANOVIC
I guess, why would they, why would they though, if it’s a – if it’s as Alan Joyce says, it’s been a badly run business – I mean they’d be taking on a lot of debt. So why would they pick it up?
MICHAEL MCCORMACK
Well farmers back themselves every day and you know, they’re not always sure of the weather. They’re not always sure of markets. They’re not always sure of their future, but they get in and they back themselves. You know, Australians should back themselves. We're a great country, we are a very innovative country and I'm sure that with the right amount of money, I'm sure with the right amount of know-how, that we can have a viable two airline solution coming out of COVID-19. It's been disastrous for the aviation industry, no question, but we can get through this.
We've already put as a Government more than a billion dollars on the table, subsidising and underwriting regional air routes and airlines, we've now put this $165 million on the table. The best thing is it's going to give people around the country the ability to fly from capital city to capital city for the next eight-weeks. We'll review it, we'll see what the demand’s like, it'll also get masks and medical equipment around the country, our defence personnel, the key medical people, it's a good outcome and I want to make sure that we have two airlines coming out of this, Peter.
PETER STEFANOVIC
Okay, there are reports this morning that there are two private consortia who are circling around Virgin Australia, are you able to enlighten us on who they might be?
MICHAEL MCCORMACK
I'm not and I think that's probably commercial-in-confidence, but the fact is there is interest there. So, as I say, as the Prime Minister has said and as others have said within the industry, there is a market solution to this and let's hope it all works out well.
PETER STEFANOVIC
Okay, so you can confirm that there is interest from two private consortia.
MICHAEL MCCORMACK
Well, there is interest, yes, and it's a viable operation, it's now got the opportunity to fly capital city to capital city, it's also got the opportunity because they fly many of those regional routes as part of the announcement that I did back in March – $298 million for not only routes, but also airlines. There's $198 million for those 138 regional centres. So Virgin flies to many of those. There's a lot there for Virgin. I wish them well, they're going to obviously take people as part of this announcement that we've made today. Already, people can now book online and the flights, well, they could start today.
PETER STEFANOVIC
Okay, can you give an ironclad guarantee that in one form or another Virgin Australia will continue to fly in Australian skies?
MICHAEL MCCORMACK
They'll certainly be flying for the next eight-weeks with this announcement today and I'm absolutely confident and hopeful that they can continue to fly – that we can come out the back of this COVID-19 with two viable airlines. We're building Western Sydney Nancy Bird Walton Airport, we're making sure that there are new runways at Brisbane and Melbourne, there's a lot going on in the aviation sector. We want two airlines – I'm confident there will be.
PETER STEFANOVIC
You don't sound so confident though, beyond the eight-weeks.
MICHAEL MCCORMACK
Let's see, I mean there's a lot of moving parts in a lot of things at the moment, Peter, but I'm confident that what we've done – put $1 billion, more than a billion dollars, on the table for our airlines. We want to make sure we've done everything possible to make sure at this point in time that they can remain in the air. We want to get Australians back from overseas – we're making that call, we're putting on mercy flights, I have worked very closely with Marise Payne to be able to do that. We want people to be able to, having now done the quarantine, to be able to get back home. We want medical equipment to be able to be transported around the country on our airlines. We're doing just that. We've put more than $1 billion on the table. It's up to the airlines now and I'm sure they're going to take part in that, they're very delighted with today's announcement and I'm sure that over the next eight-weeks they'll be doing a great job for and on behalf of Australians, as they've always done.
PETER STEFANOVIC:
Okay, Transport Minister and Deputy PM Michael McCormack. Appreciate your time this morning. Thanks for joining us.
MICHAEL MCCORMACK:
Thanks Peter. Thank you.