No one begrudges a community - we are all struggling

Greyhound Australia CEO Alex de Waal said the federal government had signed a death warrant for Australia's tour bus industry by subsidising airline tickets to key regional centres.

"The decision to halve the price of 800,000 airline tickets is illogical, discriminatory and anti-competitive," Mr de Waal said.

Prime Minister Scott Morrison said the cut-price airfares, which are available if booked between April 1 and July 31, are designed to have maximum impact over the next two sets of school holidays.

Mr Morrison said as the JobKeeper wage subsidy disappeared at the end of this month and the vaccine was rolled out, the health risk would lessen.

"As we recover and the health position strengthens, the economic issues become even more important. So it's just not an issue about health," he said.

Of the 33 interstate routes to the destinations eligible for the 50 per cent airfare subsidy, 13 were flights to five Queensland destinations.

Mr de Waal said at the very least, the government should extend the subsidy to regional bus fares.

"Hundreds of regional areas and towns without airports will be cut off from tourism if bus companies go under," he said.

"The disappearance of bus operators will siphon domestic tourism from hundreds of secondary destinations such as Rockhampton, Townsville, Longreach, Tennant Creek, Coober Pedy, Kununurra, Katherine, Yamba, Coffs Harbour, and Nambucca Heads."

Mr de Waal said national bus companies had been hurt just as badly as airlines by COVID.

The scheme has also irked the Isolated Children's Parents' Association, who have spent years lobbying for student fare discounts for the state's rural and regionally based families.

ICPA Queensland president Louise Martin said they did not begrudge beleaguered tourist centres who would benefit from half price flights.

"However, in light of this announcement it does beggar belief the IPCA's Australia and Queensland advocacy for student fare discounts continues to fall on deaf ears," Mrs Martin said.

"One of the principal objectives of student discounts is to reduce education costs, enabling families to stay in our rural and remote communities."

ICPA travel portfolio leader Kylie Camp, Floraville Station, Burketown, said they had been lobbying for years for subsidised travel for students to complete their compulsory education and maximise their chances of success in life.

"If a similar commitment was made to ICPA the impact would have a generational affect," she said.

"No one begrudges any support for any community as we are all struggling."