Australian government restores subsidies for outback airlines
Following sustained pressure from regional air carriers, the Abbott government has restored a subsidy scheme for airlines flying on underserved regional routes.
The Federal government will give $1 million a year to maintain regular low volume services in regional markets.
Federal transport minister Warren Truss said a portion of the fund would help support new routes to areas that did not have air services.
"It can take years for new regional routes to establish sufficient support to become viable, which is why we are providing this additional support for up to three years," he said.
The Coalition is fulfilling its election promise to restore the Enroute Charges Payment Scheme, supporting vulnerable air routes to regional and remote communities," Truss added.
To qualify for the subsidy, outback airlines may carry up to 15,000 passengers each year on planes with a maximum take-off weight of 15 tonnes.
The rebate scheme was halted in 2012, and carriers such as Regional Express, Australia’s largest independent regional airline, has lobbied hard ever since for its reinstatement.
A number of small provincial airlines have suffered financial woes in recent months, most recently Darwin-based Vincent Aviation which went into receivership in May.
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