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Video Podcast: Do low-cost airlines need a government leg-up?

written by Robyn Tongol | June 26, 2024

As Bonza’s administrator looks set to finally close the curtain on the stricken airline, a new YouGov survey has revealed 50 per cent of Australians believe the government should step in and back low-cost airlines in the name of affordability and consumer choice.

With more than 300 airlines reportedly having gone under in Australia over the last century, is it time for Canberra to intervene and get more tails in the skies?

Adam, Jake and Ben look at the case for more government support and how it might manifest.

Plus, as on-time performance and cancellations continue to improve, who came out on top in the May domestic reliability stakes?


You can watch the episode on YouTube above and on your device by clicking here. You can also listen to the audio-only version by using the podcast player below.

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Comment (1)

  • Yes I know we live in a market economy but there are some enterprises that need specific guidance/controls from governments in order to negate outcomes like “Bonza” etal. Our industry is best to objectively view and advise on change, in whatever category in which case government can action accordingly. In this case there is ample evidence to suggest that Bonza and any similar player should have not been given the go-ahead to implement operations. There is however ample evidence to suggest that the current majors are concentrating on mainline ops at the expense of our regions, VOZ all but gave them totally away and REX is being choosy. It appears however that QF is addressing this problem but the lead in time for the replacement of their dash 8 200/300 with the Q400 may well be a tad long. Another factor to identify is that folks in our regions maybe have unrealistic expectations of a high frequency jet service from their home region which is just not practical and economically possible. The Q400 is almost as good as a jet and far better placed to keep fares at a manageable level. Finally and not limited to aviation, governments should seriously look whether their taxes fees and charges are fair, needed or just a revenue earner for their expenditure extravagances.

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