Qantas severs $50m ties with Tourism Australia

Qantas has abruptly severed ties with Tourism Australia, because the airline feels the tourism body’s chairman – ex-Qantas boss Geoff Dixon – is attempting to destabilise the company.

“Qantas cannot continue to collaborate with an agency whose Chairman is a member of a syndicate committed to unravelling Qantas’ structure and direction,” the airline said in a media statement.

Dixon is part of a consortium of Qantas shareholders including adman John Singleton who are believed to be unhappy with the company’s strategic direction.

The relationship between Qantas and Tourism Australia is worth $50m over three years.

Qantas advised that it “remains committed” to supporting the tourism industry – but would do so with funds through the state tourism boards and not Tourism Australia, which is the national tourism body.

TA responded by saying it would consider the matter of Qantas’ suspension of activities later today.

Tourism Australia MD Andrew McEvoy said: “Qantas is the longest-standing marketing partner of Tourism Australia, and both organizations have worked for decades in a professional, collaborative and overwhelmingly supportive manner, all in the common best interest of Australian tourism.”

The current Tourism Australia-Qantas deal is due to expire on 30 June next year.

McEvoy said Qantas will continue to work with Tourism Australia for G’day LA/G’day USA (January 2013) and the Australian Tourism Exchange (April  2013 – Sydney) events, but would review other programs.

Earlier this year, Tourism Australia rolled out the latest incarnation of its Nothing Like Australia campaign, which cost $4m to produce.

TA is currently reviewing its global advertising account.

Comments


  1. Good moron
    28 Nov 12
    2:16 pm

  2. Bad timing, Singapore Airlines just signed deals with South Australia Tourism Commission, Destination New South Wales, Tourism Australia, Tourism Queensland, Tourism Victoria and Tourism Western Australia.

    Perhaps Qantas will be promoting Dubai in future. Lovely place for a holiday.

  3. Groucho
    28 Nov 12
    4:27 pm

  4. Why should two little boys having a spat undermine the national airline?
    It’s time the board admitted their mistake and sent Joyce off with Sol Trujilo.
    Rob Fyfe , the CEO of Air New Zealand will be available in January.

  5. The Awful Truth
    28 Nov 12
    5:42 pm

  6. Egos over shareholders. Gross mis management.

  7. Disgusted Shareholder
    28 Nov 12
    6:22 pm

  8. Allan Joyce has to stop reacting like this – every time he does this the share price goes south. He might be a numbers man but he sure has no business sense. He needs to be replaced – what a shame Borgetti was not appointed in the job instead of Joyce we wsould be all better off.

  9. Alan
    29 Nov 12
    10:12 am

  10. Not a fan of Joyce but I’ve got to agree Dixon should not be working for TA while at the same time trying to take-over Qantas. I think I’d have done the same thing in his position.