Improved MacAir service levels for regional Queensland

Queenslanders living in rural and remote communities across the state will have access to more reliable air services under a new agreement reached between Queensland Transport and MacAir Airlines.

Member for Mt Isa, Betty Kiernan, said she had been advised by the Minister for Transport John Mickel that agreement in principle for new contract arrangements had been reached with MacAir.

“Queensland Transport has been working closely with MacAir over the past few weeks to ensure more reliable services,” Ms Kiernan.

“Mr Mickel has informed me that the negotiations have now been concluded.

“The Minister expects the necessary documents to be signed early in the coming week, and for the re-negotiated contract to take effect from 1 January,” Ms Kiernan said.

Mr Mickel said MacAir had experienced some operational difficulties over the past few months, which have caused disruptions to a number of scheduled services.

“The airline is operating some very challenging and difficult air routes with multiple stops in very remote areas of the state.

“MacAir has conducted a full internal review of its structure and services and provided a report outlining how they can better manage services to regional Queensland.

"Queensland Transport has put in place a variation to the current service contract with MacAir that provides for an increased level of subsidy and outlines minimum service levels that the airline needs to meet.

"MacAir will need to reach these specified service levels, including meeting 75 per cent of their regulated flights within one hour of the scheduled departure time.

"The renegotiated contract is for the period from January to September next year. In the immediate term it will ensure reliable air services for communities in regional Queensland over the Christmas and holiday season.

“In the months ahead it will ensure MacAir is in a stronger position to deliver reliable services,” Mr Mickel said.

Ms Kiernan said the services covered by the contract would be re-tendered next year.

"It is a priority for the State Government to ensure that all communities have access to reliable air services, so residents can readily access essential health, education, cultural and business services in major centres, Ms Kiernan said.

MacAir is subsidised by Queensland Transport to provide six of the 10 regulated air services to regional Queensland communities. QantasLink provides the remaining four services, and are contracted to provide these services until March 2013.

MacAir regulated services include;

• Northern 1 - Longreach – Winton - Townsville
• Northern 2 - Mt Isa - Julia Creek - Richmond-Hughenden - Townsville
• Northern 3 - Mt Isa – Cloncurry - Townsville
• Gulf 1 - Mt Isa – Doomadgee – Burketown - Mornington Island –
  Normanton - Cairns
• Western 1 - Thargomindah – Cunnamulla - St George – Oakey - Brisbane
• Western 2 - Mt Isa – Boulia – Bedourie – Birdsville – Windorah – Quilpie –
  Charleville - Brisbane

Queensland Transport will release a new tender for these six regulated regional Queensland flights next year. MacAir as well as other airlines will be invited to tender.

Mr Mickel said Queensland Transport would continue to work with MacAir to ensure communities had the best air services possible during the interim period.

"Releasing a new tender will ensure that the government is subsidising the best airline or airlines to deliver these essential services to communities in regional Queensland in the longer term," Mr Mickel said.

It is expected that a new contract will be awarded in late 2009.

Media contact: 3237 1944

22 December 2008