Qantas suspends 40-year relationship with Tourism Australia

A dispute between Qantas management and former Chief Executive Geoff Dixon has resulted in the airline severing a 40-year partnership with Tourism Australia.

In a statement, Qantas confirmed it had "suspended any future dealings" with Australia's official tourism agency, saying "Qantas cannot continue to collaborate with an agency whose chairman is a member of a syndicate committed to unravelling Qantas's structure and direction."

Qantas Chief Executive, Alan Joyce (pictured), wrote to Federal Tourism Minister Martin Ferguson on Tuesday to tell him of the decision to suspend the $50 million marketing deal.

The dispute surrounds Tourism Australia Chairman Dixon being part of a group of investors reportedly seeking control of the airline.

The Qantas statement added "this conflict has arisen from the involvement of Tourism Australia's chairman with a syndicate that is actively canvassing fundamental changes to the Qantas Group strategy, including the proposed partnership with Emirates."

Qantas says it will shift its financial support of the tourism industry to state bodies with Joyce stating the company would continue to support tourism operators.

Joyce stated "we deemed it prudent to suspend our partnership with Tourism Australia, we will of course continue to be a proud sponsor of tourism in Australia through other means." Joyce added "the tourism industry can be assured that not one dollar of tourism marketing will be lost as a result of this decision.

"We believe we are better off working with the states closely in terms of tourism activity."

In a statement, Minister Ferguson said the split was a commercial matter that had nothing to do with Tourism Australia or the Government, advising that he had referred the issues raised by Qantas to the board of Tourism Australia to consider and report back.