News
Regional air subsidies re-instated
The Coalition government has reinstated the subsidy for regional airlines flying on marginal routes.
But the $1 million a year for four years federal government subsidy is far below the $6 million previously allowed and needed to maintain adequate on low-volume routes to regional areas. The Gillard government scrapped the subsidy when it introduced the carbon tax in 2012.
Federal transport minister Warren Truss said, “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.”
Under the scheme, airlines can apply for assistance for flights on routes carrying up to 15,000 passengers each year.
