MCKENZIE, WEBSTER, NAMPIJINPA-PRICE - JMR - LABOR’S BOTCHED AIRLINE HANDOVER LEAVES CHRISTMAS ISLAND TRAVELLERS STRANDED

SENATOR THE HON BRIDGET MCKENZIE
SHADOW MINISTER FOR INFRASTRUCTURE, TRANSPORT AND REGIONAL DEVELOPMENT

DR ANNE WEBSTER MP
SHADOW MINISTER FOR REGIONAL DEVELOPMENT, LOCAL GOVERNMENT AND TERRITORIES

SENATOR JACINTA NAMPIJINPA PRICE
SENATOR FOR THE NORTHERN TERRITORY

26 August 2025

LABOR’S BOTCHED AIRLINE HANDOVER LEAVES CHRISTMAS ISLAND TRAVELLERS STRANDED

The Albanese Labor Government has mishandled the transfer of the Indian Ocean Territories air services agreement, triggering cancellations and confusion for Christmas Island and Cocos (Keeling) Islands residents and visitors, as future bookings with Virgin Australia beyond 30 October 2025 have been cancelled.

Senator Bridget McKenzie, Shadow Minister for Infrastructure, Transport and Regional Development, said the chaos sits squarely with the Government.

“This is the latest chapter in Labor’s aviation failures - a bungled handover, poor communication and no plan for regional travellers. Communities are paying the price,” Senator McKenzie said.

Virgin Australia’s existing IOT air services contract ends on 30 October 2025.

After an open, competitive tender, the Albanese Government awarded the next contract to Qantas, with services due to start on 3 November 2025 under a five-year agreement with options for extensions.

Shadow Minister for Regional Development, Local Government and Territories, Dr Anne Webster, said Labor ran this process, and they’ve bungled it.

“Having lost the future contract, Virgin Australia has cancelled bookings with tourists and families left in limbo because the Government failed to deliver a smooth, orderly handover.”

“The Albanese Labor Government must act fast to fix this mess and issue a clear transition plan soresidents and businesses can plan with confidence,” Dr Webster said.

Senator Jacinta Nampijinpa Price, Senator for the Northern Territory, said local businesses were already seeing visitors cancel trips and local operators losing income because of this botched handover.

“Residents are struggling to make arrangements for travel for medical care, work and family commitments.”

“Labor’s mishandling is shaking confidence in the islands’ economy, which relies on reliable, affordable flights,” Senator Nampijinpa Price said.

Despite the Albanese Labor Government's bungling of the transition, Qantas has confirmed it will honour the same fare for customers whose Virgin Australia bookings were cancelled and providing advice for affected travellers, including a dedicated resident hotline for Christmas Island.

Senator McKenzie thanked Qantas for moving quickly despite the Government’s mishandling.

“I appreciate Qantas working with the Coalition at speed to look after impacted customers.”

“They didn’t create this problem, but they’re pitching in to help. Now the Government needs to do its job,”

Information for affected customers provided by Qantas:

Qantas has confirmed to the Opposition that customers who previously booked with Virgin Australia to or from Christmas Island, and had their tickets cancelled, will be able to re-book with Qantas at the same fare.

Impacted customers should:

• Contact the travel agent they booked with to have this resolved.

• Contact Qantas if they booked directly through Qantas.com or the app on 13 13 13.

• Christmas Island residents can contact Qantas via their dedicated resident hotline (the number already issued by the Federal Department via the island distribution list).