Gladys Berejiklian has lashed Scott Morrison's half-price airline tickets policy, saying it favours Queensland.
The NSW premier said she was 'a bit disappointed' that only one area of New South Wales - Merimbula on the south coast - was included in the plan, compared with four Queensland regions.
'That is frustrating.Especially because I think the tourism problems in Queensland are completely self-inflicted,' she said in reference to Premier Annastacia Palaszczuk's state border closures.
'I am a bit disappointed. It's fair to say that Sydney, in particular, has been smashed by Covid,' she told radio 2GB.
These are the 13 places that Australians can fly to and from on half-price tickets from April 1.But they must fly interstate
Gladys Berejiklian (right) has lashed Scott Morrison's half-price airline tickets policy, saying it favours Queensland premier Annastacia Palaszczuk (left)
Over the past year Ms Berejiklian has been critical of Ms Palaszczuk's policy to shut her borders at the first sign of a Covid outbreak in another state.
Qantas boss Alan Joyce said he had to cancel 1,500 flights into Queensland in January when borders were closed due to a handful of cases on Sydney's Northern Beaches.
Premier Palaszczuk said she 'welcomes the new support' but demanded 'more direct support' for tourism once JobKeeper ends on March 28 and also called for Brisbane-Cairns flights to be included.
Federal Home Affairs Minister hit back, telling the Today show on Friday morning: 'There are lots of people that will take any dollar that you give them, and if you give them one dollar they ask for a second.'
Victoria's acting premier James Merlino blasted the plan for only including one Victorian destination - Avalon near Melbourne.
'It's like they are looking at the Melbourne and Sydney markets and using them as the source for markets across the rest of the country.It is not fair, and we are disappointed,' he said.
'You only have to look at the numbers. Five in Queensland, three in Tassie, two in the Northern Territory, just one in Victoria. This is not a great outcome for tourism operators, other than those who will be serviced by flights to Avalon.'
The scheme has also been slammed by regional airline Rex who say 70 per cent of the routes are dominated by Qantas and Jetstar.
Rex deputy chairman John Sharp branded the scheme QantasKeeper, telling NCA NewsWire: 'It's really a Qantas package. 'They'll get 70 per cent of all the money and we'll get the scraps.'
Under Mr Morrison's plan, interstate tickets to and from 13 holiday hotspots will be subsidised by the federal government until July 31 and airlines will ramp up their flight schedules to deal with an expected surge in demand over the next three months.
The locations on offer are the , Cairns, the Whitsundays and Mackay region (including Proserpine and Hamilton Island), the Sunshine Coast, Lasseter and Alice Springs, Launceston, Beleuchtung Devonport and Burnie, Broome, Avalon, Merimbula, and Kangaroo Island.
Some 57 routes will be covered on the Qantas and Jetstar network, CEO Alan Joyce said on Thursday morning.
The discount means a return ticket from Sydney to Cairns which currently costs $233 could be as little as $116.50.
A return between Melbourne and the Gold Coast, which is now on sale from $130, could cost just $65.
To get their half-price tickets, Australians simply need to head to the Qantas, Jetstar or Virgin websites after April 1 and they will see the dramatically reduced fares.
The discount only applies to inter-state travel, not intra-state flights - providing an incentive to premiers to keep their state borders open.
There will be no limit on the number of tickets available but the government expects an average of 46,000 people per week - a total of about 800,000 - will fly on the subsidised flights.
The areas involved have been chosen because they rely on tourism for their wealth and are particularly dependent on aviation for their visitor numbers.
Almost a million airline tickets will be go on sale at half price on April 1 under a $1.2billion package to boost the ailing the tourism sector.Flights to the Gold Coast (pictured) could be as cheap as $49
The scheme is part of a huge bail-out package for the tourism sector which employs 611,000 Australians and has been crippled by the Covid-induced international border shutdown.
Amid a stark warning that 100,000 people could be fired when JobKeeper ends, the government will also give monthly payments to airlines to retain 8,600 international workers such as pilots and cabin crew until October 31 when the border is expected to re-open with every Australian vaccinated.
Virgin CEO Jayne Hrdlicka and Qantas boss Mr Joyce welcomed the package.
'This is great news for Australian aviation. This is great news for Australian tourism.This is great news for Qantas, but particularly for Qantas employees,' Mr Joyce said.
'I think it also is an incentive for the states to keep their borders open. And that's important, because we can't keep on going through the yoyo of the ups and downs of that,' he added.
Mr Joyce said he expects 22 of 25 Qantas international routes to restart in October alongside all 13 Jetstar routes -but he's prepared to start earlier or wait longer depending on the Covid-19 situation.