The decision means that private equity firm BGH Capital and US aviation company Indigo Partners have been knocked out ahead of a final 30 June deadline
It added in a surprise media release that travel to Brisbane is also possible “if you obtain permission from the Queensland government”.
The $10 million of funding set aside for the project will instead be redirected to a new $30 million entertainment hub.
Prime Minister Scott Morrison has promised the scheme will be reviewed at the end of June, and also hinted it could be extended to more vulnerable industries.
The airline will also add additional routes to Sydney as part of its new ‘minimum connectivity network’, which will run from 8 June to 31 July.
Civil Air said the action plan laid out by the report, and instigated by the business doesn’t go far enough and could be “another hollow commitment to change”.