Government secures regional air services

The West Australian June 30, 2009, 1:45 pm

The State Government has offered WA's two main regional air operators a 12-month contract extension in a bid to secure regular air services in the region.

Transport Minister Simon O'Brien said the State Government believed it was imperative to put regional WA's need for regular air services ahead of wholesale deregulation of intrastate air routes.

"Securing air routes for regional communities, which may have lost their regular passenger services if deregulation was allowed to proceed, is the Government's main priority," he said.

"Airlines around the world and domestically are struggling; for example since 1960, 43 WA-based regular passenger transport airlines have collapsed. Deregulating the system in the current environment does not secure the best outcome for regional WA.

"The airline industry is in a delicate state - it needs certainty where presently there is uncertainty."

WA's main regional network operators, Skywest and Skippers Aviation, have been offered 12-month extensions while arrangements for long-term contracts are negotiated.

Both companies have accepted the offer.

Mr O'Brien said the best way to provide certainty for airlines and passengers was to provide companies with long-term assurances they needed to invest in new aircraft and other infrastructure.

Once long-term plans were agreed, the 12-month extension would be annulled with new arrangements beginning immediately.

PERTH LISA CALAUTTI

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