Officials at Tourism Australia have come out in support for chairman Geoff Dixon following a spat with Qantas chief executive Alan Joyce.
Earlier this week Australian flag-carrier Qantas confirmed it would suspend funding for Tourism Australia unless Dixon stepped down from his role with the tourism body.
Qantas accuses Dixon, a former Qantas chief executive, of colluding with a rebel investor group calling for change in the strategic direction of the airline.
The group has questioned the value of a recent deal between Qantas and Emirates, which will see the Australian carrier move its European and Middle Eastern gateway to Dubai.
“It is a clear conflict that needs to be resolved,” Joyce told an industry audience at a National Aviation Press Club lunch in Sydney.
Qantas said it would now direct the funds toward state tourism organisations until the matter was resolved.