Department of the Legislative Assembly, Northern Territory Government


26 February 2002

1. Virgin Blue Government Subsidy


1. What is the worst-case cash exposure faced by the Northern Territory Government in relation to its subsidization of Virgin Blue?

2. How many seats on each flight in and out of Darwin will the government be responsible for.

3. Of these seats, how many are expected to be sold on each flight by the Northern Territory Tourist Commission.

4. To what extent is the official travel by government employees going to be directed to Virgin Blue.

5. Is the Territory Government going to have an allocation of seats on each flight to either sell via the Northern Territory Tourist Commission or use for employee travel, and how much will government have to pay Virgin Blue if that seat is not filled.

6. Is the cost of the subsidy being paid out of the existing resources of the Northern Territory Tourist Commission.


1. The Northern Territory Government’s agreement with Virgin Blue involves a maximum exposure of $2 million per year, for two years.

2,3,5. The details of the agreement with Virgin Blue are commercial-in-confidence.

4. Official travel by Government employees is to be undertaken on the best price service at the time of booking, subject to availability of suitability of flights and connections.

6. The Northern Territory Tourist Commission has received additional funding for this agreement.
Last updated: 04 Aug 2016