Funds give airlines hope

The federal government's Enroute Charges Payment Scheme will subsidise navigation charges on low volume air services providing $1m each year across four years to assist scheduled passenger services.

Regional Express (Rex) chief operating officer Neville Howell said the amount the government allocated to the new scheme represented only 15 per cent of the assistance given under the previous scheme.

"Furthermore, the low threshold of 15,000 passengers per annum means that most of Australia's regional routes are not eligible for the rebate," Mr Howell said.

"It is disappointing the government is doing so little to help regional aviation when 16 regional airlines have collapsed in the past 12 years.

"Token amounts will not stem the permanent loss of regional services to many parts of regional Australia."

He said Rex was examining the eligibility of its routes under the scheme and may submit an application for the routes that qualified.

Airlines can apply for assistance for scheduled passenger services on routes carrying up to 15,000 passengers a year using aircraft with a maximum take-off weight of 15 tonnes.

Regional Aviation Association of Australia chief executive Paul Tyrrell said the scheme was "better than nothing".

"It was zero dollars before so this is welcome, however, the scheme is tiny compared with the previous (Liberal government's) $6m (a year) scheme."

He said the scheme was a good investment in regional Australia and the association hoped to encourage the government to grow the scheme.

"It's a great start but if all possible don't leave it at this low level.

"The more people we can get off the roads and keep safe in a plane is a good thing."

He said the regional issues of poor roads, poor rail and poor air services made it hard for regional businesses.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss said applications to the scheme could be back-dated, meaning services flown since July 1 could be considered.

"The new scheme will provide assistance based on the enroute navigation charges levied by Airservices Australia.

"For existing routes, assistance will equate to 60 per cent of the enroute charge for an eligible flight, with assistance of 100 per cent of the charge available for new routes for up to three years."

He said priority would be given to routes that linked a regional or remote community with its capital city or major regional centre.

A spokesman from his office said the previous Coalition government offered $6m a year while it was in office, while Labor only retained $1m a year for aeromedical.

Aeromedical services will continue to get $1m each year under the new scheme.

"However, the new scheme is targeted towards supporting smaller, marginal routes, as well as encouraging new services to commence to strengthen our regional aviation network," the spokesman said.

He said Rex was in a position to make the most of this new scheme on its most marginal routes.

However, just last week Rex announced it would be reducing its services to Taree, Grafton, Lismore and Newcastle from October 27 to improve "operating efficiencies".

Local Government NSW president Cr Keith Rhoades said the group welcomed the scheme.

"It encourages regional commercial airlines to open up new routes to regional/rural areas of NSW and maintain and increase services for existing routes," Cr Rhoades said.

"Regional air services are essential for the social and economic well-being of townships across the State.

"Ensuring a viable and accessible regional aviation sector also provides Sydney-based professionals, businesses and investors access to their interests and opportunities in rural and regional NSW."

GRIFFITH Mayor John Dal Broi has welcomed the return of the Enroute Charges Payment Scheme, saying anything that helps regional airlines remain more viable is a good move.

However, he wasn’t certain how much of the subsidy the

town’s local airline Par Avion would receive.

“(Griffith City) Council has done what it can – we’ve removed the landing fees.

“It’s our contribution to make the ticket charges lower and

more attractive to entice passengers to fly, and to lower the burden on Par Avion.”

Councillor Dal Broi said while the $1 million didn’t seem like a

“huge amount” when spread across the whole of Australia he

hoped it would make the services more viable for companies to run.

“Air services are very important.

“We’ve seen our passenger numbers increase in the past few

months.

“We have a lot of people who do business down south.

“Also (there are) mad-keen footy fans who go down.”

Cr Dal Broi said Regional Express (Rex) also flew out of Griffith to Sydney, however those flights carried too many passengers to qualify for the funding.