Qantas suspends funding to Tourism Australia

Qantas suspends funding to Tourism AustraliaAlan Joyce, chief executive officer of Qantas Airways has defended the company's decision to suspend funding to Australia.

Joyce said that the partnership with Tourism Australia which goes back four decades has been scrapped because its chairman Geoff Dixon was aiming at buying into the airline. The cancellation of the $44 million partnership will allow the company to now fund regional tourism bodies instead of Tourism Australia.

Queensland Tourism Industry Council chief executive Daniel Gschwind said that the cancellation of the contract will affect the ability of Tourism Australia to market the country in overseas markets. The lack of funding might disrupt overseas advertising campaigns of the tourism body.

Mr. Dixon, who was a former Qantas chief executive, is now part of a group of investors looking to buy into the airline and take it in a different direction. Mr. Joyce said that Mr. Dixon was part of a consortium "out there briefing against the company" and alleged that Mr. Dixon had a clear conflict of interest in the matter.

Mr Dixon and a group of investors have purchased two per cent stake in the airline and are now looking to make a bid for the company.