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The Western Australian government has extended its cap on regional airfares for another six months.
The Regional Airfare Zone Cap (RAZC) scheme will receive another $4 million in funding, allowing it to continue into the middle of 2026, a move which follows a successful three-year pilot program.
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The WA government said more than 420,000 capped airfares have been taken since the RAZC launched in 2022, with state Transport Minister Rita Saffioti saying a “review of the scheme and renegotiation of terms” will take place this year.
“This scheme is the first of its kind in the country, and our Government has been proud to support regional families with this critical cost-of-living initiative,” Minister Saffioti said.
“This program has saved regional families thousands of dollars during challenging cost-of-living conditions and allowed regional residents to travel to Perth for important family occasions and appointments without the added stress or often prohibitive airfares.
“This additional investment will see the scheme extended until the middle of 2026 and ensure there is no gap in service delivery while we review and renegotiate terms with the airlines.”
Run by the WA government in partnership with Airnorth, Nexus, Qantas, Regional Express (Rex), Skippers Aviation and Virgin, RAZC caps regional fares to and from Perth at either $199 or $299. The government pays airlines part of the difference in the fares, though exact amounts are commercial in confidence.
Data in 2023 showed that the scheme, budgeted for $6.2 million in its first year, cost the state government $17 million in FY23. According to industry insiders cited by The Australian Financial Review, most of this went to Qantas, which operates around 65 per cent of regional flights in WA.
Minister Saffioti, who is also the state’s Deputy Premier and Treasurer, told the Financial Review at the time that the WA government was committed to the three-year pilot scheme.
“Whilst $19 million was initially committed, being a pilot program, we anticipated additional funding may be required,” she said.
“At a time when cost of living is impacting households everywhere, this program is saving regional residents thousands of dollars on air travel, which for many families and individuals is not a choice.”
WA government data showed that 151,181 capped airfares were flown in the first 12 months of the scheme, with Karratha, Kalgoorlie, and Port Hedland the most popular destinations.
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