Community
31 July, 2024
Virgin axes Tokyo services
VIRGIN Australia is axing its once daily flight between Cairns and Tokyo (Haneda) from early next year due to the slow recovery of inbound visitors from Japan, which is up to 35 per cent below pre-COVID levels.
The airline first launched its Cairns-Tokyo, Haneda services in June 2023.
However, a below forecast recovery of visitors travelling from Japan to Australia due to sustained weakness in the Japanese yen, has impacted demand for the services, rendering the route commercially unsustainable.
Virgin Australia chief transformation and strategy officer Alistair Hartley said it was a difficult determination
“Our international network continues to be a central part of our strategy. Withdrawing from Cairns-Tokyo services was a tough decision, but unfortunately the recovery of inbound visitors from Japan is significantly below forecast and therefore operating our own service to Tokyo is no longer commercially viable,” he said.
“We know this is disappointing news and we are sorry for the impact this decision will have on those guests booked to travel with us from February 24, 2025. I want to acknowledge and thank the Queensland Government for its partnership in launching our Tokyo services and its ongoing support for Virgin Australia as one of the largest carriers of tourists to the Sunshine State.”
Cairns Airport chief executive officer Richard Barker said Virgin Australia’s service to Tokyo Haneda had been a popular and well-received route for locals across Tropical North Queensland. “This is evidenced by strong outbound passenger numbers visiting Japan since the commencement of flights more than 12 months ago,” he said.
“Japan has been a slow market to recover post-COVID and this has been exacerbated by the current economic climate, including a weak yen.
“It is disappointing that these market conditions have affected the viability of Virgin Australia’s service between Cairns and Tokyo Haneda from February 2025.”
Tourism Tropical North Queensland chief executive officer Mark Olsen said the organisation had undertaken extensive marketing and public relations activities in the Japanese market to support the direct routes to Cairns.
“Through the International Tourism Recovery Program funding from the Federal Government, TTNQ has rolled out numerous industry campaigns to drive demand on the Haneda service to Cairns,” he said.
“These delivered more than $5.6 million in direct sales bringing over 10,600 passengers since the service began last year.
“It is disappointing that market conditions in Japan have impacted the Haneda service, but Japan remains a key market for Tropical North Queensland, and we will continue to work closely with our partners to support inbound travel from Tokyo and Osaka.”
Tourism Minister Michael Healy said it was “disappointing Virgin had decided to cancel the Cairns-Haneda (Tokyo) route from February 2025, reportedly due to poor inbound bookings”.
“This is a commercial decision by the airline. It is understood the weak yen is a factor in Japanese people not travelling to Australia,” he said.
Mr Healy met representatives of all four international airports – Brisbane, Cairns, Sunshine Coast and Gold Coast – on Wednesday to discuss the importance of maintaining existing Attracting Aviation Investment Fund (AAIF) supported routes.
It is understood the government is looking at the AAIF funding provided to Virgin for the Cairns-Japan route and whether any needs to be repaid.
