REGIONAL AIR SUBSIDY GOOD NEWS FOR NT MILK-RUN: An airline ‘milk-run’ along the Northern Territory’s Stuart Highway is a step closer to reality, after the Federal Government reintroduced a subsidy for remote and regional airlines. NT Transport Minister Peter Styles welcomed the news, saying the regions have been crying out for better air links and the Government has encouraged the industry to suggest innovative ways to make services via Tennant Creek and Katherine possible. He said under the Enroute Charges Payment Scheme, “remote and regional operators can receive assistance of up to 60 per cent of the enroute charge for existing services; and up to 100 per cent for new routes for a period of up to three years.” “A ‘milk-run’ service has existed in the past, taking passengers and freight from Darwin to Alice Springs via Katherine and Tennant Creek. The service was viable up until 2004 when there was an economic downturn. “It’s encouraging that we have received three expressions of interest for the ‘milk-run’. These are now being assessed to see if they are worth pursuing as part of a possible two-year trial, he said. In assessing the proposals, the Department of Transport will consider factors including commercial viability, airfares and timetable, types of aircraft that will be used, the start-up timeframe, how the proponent will engage with stakeholders, market and grow the service, how the service will support local industry and development, and past performance.
Posted on: Mon, 22 Sep 2014 04:07:03 +0000
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