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Skywest contract extended

26 Jun, 2009 02:53 PM
ESPERANCE residents need not worry about the future of Skywest in Esperance now the State Government has agreed to extend contracts for both Skywest and Skippers Aviation for the next 12 months.

Previously, the Minister for Transport, Simon O’Brien, was considering the findings of an aviation review which called for the deregulation of a number of routes in WA to enable for competition.

Mr O’Brien said it was important to provide the community and the airlines stability in these uncertain economic times.

“I will be offering the operators a 12 month extension while I work with the industry and interested parties to develop a long term contract which will enable to airlines to invest in new aircraft.

“These airlines need long term stability to be able to convince bankers to finance new aircraft,” Mr O’Brien said.

“The airline industry is in a delicate stage and it needs certainty where there is uncertainty at the moment.

“I will be visiting all communities and discussing the issue at length as we work towards the long term contract definition.”

National’s member for the Mining and Pastoral region, Wendy Duncan, said she was pleased with the minister’s decision.

“When the aviation review was compiled it was under different economic times. The downturn in the mining industry and the slowdown in the economy have changed things significantly,” Ms Duncan said.

“From the Nationals’ point of view, we believe regional WA needs regular and reliable air transport, and if that is achieved through regulation of the air routes then that is what we support.

“The risk of deregulation means that routes with larger demand and larger numbers of passengers will survive, and may even have cheaper airfares, while some routes, possibly Esperance, could suffer.”

Ms Duncan said she recognised the airfares in Esperance were an issue to locals – with the tourism industry especially calling for cheaper airfares to encourage travel.

“I agree the price of the airfare in Esperance is expensive compared to others in the state, and this is something I would like to see Skywest and the Minister for Transport look at, but at the moment I believe it is more important to provide a regular and reliable air service.”

Esperance Regional Tourism Authority chairperson, Heather Gee, shared a similar viewpoint.

“I’m glad to see Skywest have their contract renewed. Esperance has a desperate need for a regular air service, however I think it’s very important for tourism to see the ticket prices lowered. At this stage it as a massive hindrance on visitors,” she said.

Since 1960, 43 regular passenger transport airlines have collapsed in WA – including two this year.

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