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Is the Australia-NZ travel bubble the way ahead?



The reopening of slotxo quarantine-free travel between Australia and New Zealand this week was a joyful occasion for the many families
and friends who were finally reunited.

It was also a huge moment for the airlines, particularly Qantas and Air New Zealand.

Most airlines have muddled through a bruising pandemic year with a combination of private capital injections, government support and
strong demand for freight services.

The industry's more optimistic voices hope that the bubble could foreshadow a much better year ahead for the Asia-Pacific region's
battered airline sector.


Reason for celebration
For Australia's Qantas, which lost A$1.03bn ($800m ; £570m) and saw its revenues plummet by 75% in the second half of 2020,
the bubble is a glimmer of the light at the end of the tunnel.

630 employees from Qantas and its budget carrier Jetstar have returned to work to help operate the roughly 200 flights each week
planned between the two countries.

Monday's flights were full, and the two airlines expect to consistently fly at around 80% of capacity with those numbers increasing as
the New Zealand ski season approaches.

Already, Qantas had started to bounce back domestically, and predicts that both of its carriers will exceed pre-Covid volumes within
Australia next year.


The way forward
The bubble is a reason for hope for the aviation industry for the wider region, according Subhas Menon, the Director General of
the Association of Asia Pacific Airlines (AAPA).

"It is the first bilateral travel bubble without any quarantine requirements. And of course it has been a long time coming but it is
a model that can be emulated across the globe," he said.

Qantas chief executive Alan Joyce agrees.

"There's clearly a lot of countries in the region, particularly the Asia-Pacific region, that have high control over Covid. Not to the extent
of Australia and New Zealand, but they give us opportunities, markets like Singapore, markets like Japan, markets like Taiwan.

We're also actively looking at the Pacific Islands because there is real opportunity for places like Fiji, the Pacific Islands to open up which
we think there is a huge demand for. So they all fall into that category," he said.

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