The reality, as opposed to the emotive rhetoric from the ACTU et al, is that the demand for travel will not collapse along with Qantas. The demand will remain and will be met by other entities
I don't think they are saying that at all. Just like the car industry, I think the issue is the loss of skills and the long term effect on the nation when manufacturing (heavy maintenance etc) disappears.
This Ford guy sums it up pretty well:
THE global boss of car giant Ford has warned the Australian economy will suffer "in the long term" with the loss of its auto manufacturing sector.
With Ford and Holden announcing factory shutdowns in 2016 and 2017, and with Toyota likely to follow in 2018, Australia's entire automotive manufacturing base - which employs in excess of 50,000 workers - is destined to collapse, with little hope of a revival.
At an open forum on day two of the Detroit motor show, Ford chief Alan Mulally was asked by a university student about the importance of government assistance in manufacturing.
"No country is ever successful in the long term … without a really strong and vibrant manufacturing base," said Mr Mulally.
"It's the foundation of all economic development. You actually make things that create value. That's why every country around the world is collaborating with the private sector … to figure out how to create an environment where manufacturing (is viable)."
Nineteen of the G20 nations have vehicle manufacturing industries but that figure will fall to 18 once the car industry shuts its doors in Australia.
The industry estimates at least $10 billion in economic activity would be wiped from Australia each year once car manufacturing ceases.
Early in Holden's campaign for an increase in government assistance last year, Holden boss Mike Devereux told News Corp that Australia needed to decide if it was content to simply become "a farm, a hotel and a quarry", referring to agriculture, tourism and mining as the big industries once manufacturing dies.
Yesterday, Mr Mulally said 70 per cent of all the research and development in advanced technology and investment is associated with manufacturing, and it was the "foundation of wealth creation".
"You create value and you create jobs," he said.
When asked if this meant Australia was "doomed", Mr Mulally said: "I don't know about that word, but clearly Australia is going where it's going. And what Australia's done with their (low import) tariffs and what they've done (reducing) support of their industry ..."