Airfare relief unlikely for frustrated regional flyers

Résumé détaillé

Travelers on some regional air routes are paying more than double the per kilometre charge facing those flying between the major cities, the Productivity Commission has found.

Travelers on some regional air routes are paying more than double the per kilometre charge facing those flying between the major cities, the Productivity Commission has found.

Confidential airline cost and revenue data obtained by the commission shows that those living in rural and remote areas pay, on average, a 13 per cent premium for air services compared with those travelling between metropolitan destinations.

But on some routes, particularly those involving short flights in regional and remote areas, the charge per kilometre flown can be more than double the rate applicable on inter-city routes.

The findings add weight to widespread frustration among rural and regional business and communities about the burden of costly and unreliable air services.

The Association of Mining and Exploration Companies told a Senate inquiry that the escalating cost of regional and remote air services had become a serious operational challenge for its members.

The association said the unreliability of such air services had reached the point that many members were now chartering private planes despite the much higher cost.

“While this is not a sustainable long-term solution, it is the most practical near-term approach to keep operations running,” the association said.

Regional Development Australia Kimberley said high and volatile airfares, limited and unreliable air services and high market concentration was hurting the area’s productivity and competitiveness, particularly in tourism.

“These impacts do not eliminate the need to travel; rather, they alter behaviour by suppressing travel frequency, delaying access to services, increasing financial stress onto households, and increase the cost of doing business in the Kimberley,” the organisation said.

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