Regional Air Services

In reply to the Hon. F. PANGALLO (17 May 2018).

The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment): The Minister for Transport, Infrastructure and Local Government has prepared this advice:

The instrument for regulating air services in South Australia is the Air Transport (Route Licensing-Passenger Services) Act 2002.

The act establishes a licensing system for regular passenger transport services on declared routes between airports in the state in order to encourage an operator or operators of air services to establish, maintain, re-establish, increase or improve on marginally viable routes.

The air services route between Adelaide and Mount Gambier has been established for more than 25 years. Current passenger demand is approximately 47,000 seats per year which makes it Rex’s second largest regional South Australian route.

I am advised that Regional Express will still be retaining a capacity of 66,000 seats annually following the recently announced service amendments, with 36 flights per week remaining.

The Department of Planning, Transport and Infrastructure therefore advises that the route is not considered to be marginally viable. Variations in the provision of services by the operator is considered to be in response to fluctuations in the relatively strong market demands on this route.

The Port Augusta to Adelaide air passenger service is currently the only declared route in South Australia due to relatively low patronage.

In comparison, there are currently six flights per week on the Port Augusta route.

In light of these facts, I have been advised by the Minister for Transport, Infrastructure and Local Government that there is currently no intention to regulate the air route between Adelaide and Mount Gambier under the Air Transport (Route Licensing-Passenger Services) Act 2002 at this time.