Business Daily.
.
Business Mentor
A+ R A-



Brisbane 25 June 2013. The Newman Government will deregulate air services between Cairns and Weipa, allowing the route to open up to new operators, more competition and new services.

Transport and Main Roads Minister Scott Emerson said the route, currently operated solely by QantasLink, was one of the more popular regional air routes in Queensland.

“There’s been a growing demand for services between Cairns and Weipa with patronage growing by more than 15 per cent over the last two financial years,” Mr Emerson said.

“As demand for this particular route continues to increase it made sense to open it out to the wider market and remove the need for regulation.

“The deregulation of air services between Cairns and Weipa followed feedback received through five week long review of all long-distance services conducted by the department.

“Out of all the air services, the Cairns to Weipa route received the most feedback with 585 individual submissions received.

“Passengers, as well as local councils and industry partners provided input and detailed submissions into the review.

“The route will become fully deregulated by the end of 2014 which will allow other operators to start planning”

Member for Cook David Kempton said this announcement is great news for the region.

“Currently, there are 17 regulated return services each week between the two important regional centres,” Mr Kempton said.

“The feedback I have received about air services on this route identify issues with pricing, service timing and poor connections to other services.

“By deregulating services on the route, we may see more competition from other carriers which could help to deliver lower fares for Weipa residents, fly-in fly-out workers and tourists.

“I am also pleased to hear a number of other airlines have already expressed interest in this particular route.”

The Queensland Government currently regulates 10 air services in the state, including annual subsidies totalling $8.7 million for subsidising five of the regulated routes.

Page 390 of 411

Business Daily Media