Qantas has suspended a $50 million marketing deal with Tourism Australia, claiming its chairman Mr Dixon, a former Qantas CEO, was "agitating" behind the scenes to remove the current Qantas management. Qantas has formally suspended its relationship and will now redirect its significant marketing budget, which helps the federal government market Australia overseas, to state-based tourism bodies.
The Daily Telegraph has confirmed that Qantas boss Alan Joyce wrote to Tourism Minister Martin Ferguson late yesterday informing him that the Qantas board was suspending all future dealings with Tourism Australia.
It is believed the letter cited an "untenable" conflict of interest by Mr Dixon following reports he was leading a consortium to remove the current Qantas management and buy out the airline.
It claimed Mr Dixon could not act impartially as a government-appointed chairman while privately seeking to undermine the carrier.
Qantas also claimed Mr Dixon was deliberately trying to stymie the Qantas deal with Middle East carrier Emirates Airlines as well as undermine the strategy.
Mr Joyce is believed to have warned the government that it would refuse to have any further dealings with Tourism Australia while Mr Dixon was chairman.
It had recently signed a $44 million deal with Tourism Australia to promote Australia as a tourism destination to the rest of the world.
But he is also believed to have confirmed that Qantas would continue to put money into tourism marketing and sponsorship, just not with Tourism Australia.
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