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Like many others here I do not believe that increasing QR flights will bring down airfares and even QR admit this.
As to whether it would materially increase tourism we would need to see the breakdown of people who fly QR to/from Aus.
If its just facilitating more overseas travel by Aussies then that is taking money out of our economy; vs if materially bringing more foreigners in. The ME is NOT a huge market for Aussie tourism, so it comes down to how many Europeans would choose a ME transit over an Asian one. Lets see the stats.
Tell you what; how about this:
* The government allows those airlines that want to provide services into and out of Australia to the Middle East to do so (complying safety etc etc); sorta like they do to other destinations;
* The public decides what they want to pay, who they want to fly with and all the rest;
* The airlines that can't convince enough people to fly with them (expensive or cough service) won't make money and will withdraw;
* The public is happy, the attractive airlines are happy, everyone else can just do their own thing and let others do theirs.
Deal?
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