State Government committed to maintaining western and remote air services

The Queensland Government is committed to maintaining existing air services to Northern, Western and Gulf regions in Queensland, Transport Minister John Mickel said today.

Mr Mickel said Queensland Transport continued to work closely with MacAir Airlines, in an attempt to improve the reliability of subsidised air services in some of the state’s most rural and remote communities.

MacAir secured a competitive five-year contract with Queensland Transport in April last year, to operate regulated air services to communities across the Northern, Western and Gulf regions.

Over the past few months, Queensland Transport has received numerous complaints about delays, cancellations, or the non-arrival of scheduled flights; while MacAir have also voiced concerns about providing the agreed services.

“Prior to Christmas last year Queensland Transport offered to substantially increase the level of subsidy on the basis of putting services back out to open tender at the end of June this year,” said Mr Mickel.

“That was four weeks ago but to date MacAir has not properly finalized a new agreement.

“Queensland Transport has tried its hardest to help MacAir deliver on its contractual obligations for the supply of air services.

“When MacAir asked for more money to deliver those vital air services, we agreed.

“We offered to substantially increase the subsidy funding in the short term. However, in return Queensland Transport sought a guarantee of better performance in return.

“We made it abundantly clear to the company we were prepared to work with them on performance targets provided MacAir was able to deliver and maintain the services it was contracted to provide.

“MacAir has now asked the Queensland Government to provide a one off ex gratia payment of $7 million which is not linked to performance.

“This is in addition to the annual subsidy of $4.7 million and on top of the Government’s offer to substantially increase this subsidy.

“We have gone out of our way to assist MacAir on a number of matters. However, the request for the non performance based ex gratia payment of $7 million cannot be agreed to in the interests of the prudent spending of taxpayers’ funds.

“If we cannot successfully resolve the present difficulties, Queensland Transport will go back to the market and re-tender the air services contract, to ensure that regional Queenslanders receive the crucial air services they need and deserve.”

The Government’s commitment to maintaining existing air services has never been in question despite false claims to the contrary today form the Opposition who are only interested in scoring cheap political points,” Mr Mickel said.