The Australian regional aviation sector has received a $300 million aid from the federal government in order to help keep services running to the remote areas.
Despite a fall in passenger numbers, the industry has highlighted the necessity to keep connections running. However, it fears that services such as tourist operators and flying schools would become “fragile” due to the pandemic’s hit on the economy and would struggle to survive.
Regional centres such as Wagga Wagga in NSW required the freight and medical supplies that the airline provided, even if there was a reduction in passengers. The funding is to focus on passenger and aero-medical services across 138 regional communities with the potential of an additional $100m to underwrite regional aviation companies to prevent “imminent collapse”.
Airline Rex was expecting to halt its operations and stand down 90% of its staff. With this federal aid, the airline can keep flying to almost all of its 59 destinations at regular service standards.
Chairman, Jim Davis stated that although regional services provide vital links to many communities, the implementation of border closures and a drop in passenger demand has left air service operators close to closing.
The action of the governments funding is expected to save “essential regional air services [that] would have been lost forever.”
