Australian Federal Tourism Minister Martin Ferguson on Thursday threatened to intervene in an industrial dispute at Qantas, warning trade unions they should not set out to damage local industry.

Due to the ongoing industrial action, Qantas on Thursday said it would ground five of its aircraft and cut up to 100 domestic flights in a week. The damage so far to the industry had been nominal, but there was concern about the impact of further action as the peak tourism season looms.

Ferguson said the Australian tourism industry depended on a vital and strong aviation sector, and the sooner the parties can sort out the negotiation over pay and job security, the better it will be.

"If they did not, the government could require the parties to resolve their issues under the umbrella of the Fair Work Act," he told reporters in Canberra on Thursday, adding that in exceptional circumstances, industrial action that had wider implications than for just one business can be suspended or terminated if it threatened significant damage to the economy or to the welfare or safety of the population.

"You can have a dispute with employers but there is a responsibility on trade union leaders to never set out to damage Australian industry."

Meanwhile, Australian Tourism Export Council managing director Felicia Mariani said thousands of small tourism operators were the silent victims of the industrial action.

She said the entire tourism industry relied on the effective delivery of aviation services bringing international visitors to Australia and distributing them around the country, and any disruption to services has a significant direct impact on the bottom line of local tourism businesses.

Mariani said the sector, which had shed 16,000 full-time jobs in the past three months, could suffer collateral damage from the industrial action.

"Aviation is the lifeblood of the tourism sector," she told reporters in Canberra. "Any threat to the efficient operation of the aviation industry represents a very severe threat to the ongoing viability of the tourism sector."

Mariani welcomed possible government intervention, but is hopeful of a breakthrough in the dispute.

Qantas has been bracing on-going strike since September sparked with failed negotiation with engineers, pilots and airport baggage handlers and ground staff.